Salary of Director

Income from salary & perks for directors is calculated under business income so all perks will be taxable as business income. Also tds need not be deducted as it is necessary for only Salaried Employees.  

Please correct me if i am wrong

wrong.......pls check again

ASHOK sir,

perquisite s wiil be calculated

a) if the accomodation is provided by the employer, then

at the rate of 15%  or 10% or 7.5%( depending upon the population of the city where accomodaion is provided on the salary + all taxable allowances.

b) if accomodation is taken for lease by the employer

amount of lease rent paid by the employer or that 15%,10%,7.5% which ever is lower.

even though the salary is not paid during the current year, perquisite valuation  has to t be made as per the above.

the reason is salary is taxble eitheron   due basis or receipt basis , whichever is earlier.

hence even though salary is not paid, it will be assessed to tax, as too the perquisitees as per the calculation above.