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Taxation in a company
how much income tax is charged on the directors , as they get salary? as my concern is that in a sole proprietorship the owner pays the tax as per the profits earned by the firm in a financial year , how it goes in a company ?
Replies (5)
Normal slab rate applies. however TDs had to be deducted under sec 192
In a Company both Company and Directors are different entities.
A Director getting salary is in capacity of an Employee. It's Salarexpenditure for Company.
Whereas in proprietory company, both proprietor and owner are same.
A Director getting salary is in capacity of an Employee. It's Salarexpenditure for Company.
Whereas in proprietory company, both proprietor and owner are same.
So the profit of the company is considered the income of directors ? and they are liable for taxes ?
Director gets a fixed pay...profit of company is of shareholders.
Director in a company will have to pay taxes on Salary income plus Capital gains income from sales of his shares if any plus other Gifts/Incentives covered under 'Income from other sources'
For sole prioprietors, it is taxed under 'income from business'.
TDS will play a major role for Director's while submitting returns.
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