Director's Remuneration

Tax Glossary Definition

Director's Remuneration

Director’s Remuneration – Director’s remuneration represents the payment or benefits provided to company directors in return for their managerial and professional services. It may consist of salaries, meeting fees, commissions, bonuses, and other perquisites. Such remuneration is taxable as income and governed by company law as well as applicable tax provisions.

Example: A firm paying ₹10 lakh annually to its managing director as remuneration must comply with approval requirements under the Companies Act, and the amount is taxable as income.

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