Question:
Director of a company getting Retainership Fees from his company. co. also deducting TDS. kindly advise which Income Tax Return Form should be used for filling of his return. Upto last year he was showing under Income from other sources. But this year should it computed as Income from Profession Fees ?
Answers:
Treatment of the fees received depends on nature of engagement of the director with the company & the kind of services rendered. If the retainership fees paid is in nature of remuneration for services rendered for business activities & the directorship is full time, the fees amounts to remuneration which can be received either as salary or fees for services. Since the company has paid it as fees, it should be treated under head 'Profit & gains of business or profession' & taxed accordingly.
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