as the pvt ltd.companies don't have strict regulations is it possible that they employ their relatives and pay high remunerations to them to save income tax?..how does the govt. inspect these issues? if someone is appointed as a managing director then their is no limit for his remuneration so they can just pay as much they want so how do they deal such issues?
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income tax of a pvt ltd co.
Replies (4)
Dear Vignesh,
That is the reason that 40A 2(b) is there in income tax
in the head business or profession & even a auditor signing
Tax Audit Report has to make disclousres of such payment in
form 3cd.My Sugessiton is u read the section 40A 2(b)
With Regards,
Amit
There should be justification of any payment made by any assessee and hence you cannot pay any amount that you like to pay.
There always has to be some reasonableness in the same. If the same is not proved before the IT authorities then it will be added back to your income.
And even any payment made by company to its director as remuneration, company have to deduct TDS.
Thanks All for clarification...
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