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taxability of director's salary

Binay Sahoo (18 Points)

27 August 2018

under which head director's salary will be taxable

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Parihar Gopal (Corporate Taxation ) (392 Points)
Replied 27 August 2018

Hi ,

go through the below Prov - for Taxation of Director salary

Sec. 15 of Income tax Act, Income taxable under the head salaries only if there exists employer & employee relationship between the payer & payee. Sec. 2(13) of Companies Act – meaning of Director – Director as such are not employer or servant of the company . Sec. 56(2) of Income tax Act, specific Income chargeable under the head “Income from other sources “ include Director Fee .