Ours is a Private Limited company with two directors. Last year one of the directors was given a monthly consolidated salary of Rs.25000 and provided with a leased accomodation with annual rent 240000/-. The director is proposed to be given any salary this year because of low turnover. However, the accomodation at Rs.252000 per annum continues to be provided.
Q.1. What if the director is paid a lower salary i.e. less than Rs.25000 to say Rs.10000/- per month and the the perquisite value of leased accomodation is calculated @ 15% of his salary ? Other Taxable perquisites amount to Rs.35000 during the year. A meeting of the board of director or EGM to be held for this proposal of lower salary to the Director be passed ?
Q2. What if no salary is paid to the director? How is the perquisite value of Accomodation be calculated which is to be calculated at 15% of the total salary ?
Q3. If whatever salary is paid or credited to director's account in lumpsum in March 2010, how is the TDS to be calculated ?
Ashok Monga
