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Directors Remuneration

KUNAL DESAI (B.com, ACA) (41 Points)

14 May 2011

In which "head" Directors' remuneration or sitting fees or commission to be shown..??

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4 Replies

Amol Gopal Kabra (CA,CS,DISA) (Practicing CA) (8539 Points)
Replied 14 May 2011

Under the head Personnel Expenditure..

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 15 May 2011

PERSONEL EXPENSES

KUNAL DESAI (B.com, ACA) (41 Points)
Replied 17 May 2011

Sir,

first of all thanking you for giving your precious time to me but let me sorry that I havenot exactly mentioned question but I want to ask that

A Person is getting Directors' remuneration from the company so in ITR in which head it will be taxed in the hands of DIRECTOR..??

is it IFOS or SALARY..??

Thanks and Regards,

CA. Arpita Singhal (Partner) (100 Points)
Replied 18 May 2011

The remuneration, received by a director is taxable as 'Income from salaries' or not, would depend upon whether the director is an employee of the payer or not. This can be determined from the nature of the relationship between the director and the payer.

If the relationship of a master and servant exists between the payer and payee, then the director would be an employee and the remuneration that is received would be taxable under the head 'salaries'. However, if such relationship does not exist, then the director will not be considered an employee of the payer and the Income would be taxable as Professional Income.

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