IT requirement for director's payment

If someone is director of a private company and receives payment from company as professional fees. The company deducts TDS u/s194J while making payment. Please reply these queries:

1) Is it required for him to maintain books of accounts? If yes, Please specify documents needs to be maintained as per IT act?
2) Which expenses he can claim while filing return? Can he claim personal expenses like (payment to driver, housemaid, telephone bills etc.)?
3) Which ITR from shall be used for filling ITR 4/4s?
4) Is it also required to mention investment made or assets purchased in earlier FY?

Looking forward your reply.
Thank you.
Asked 1 year ago in Income Tax from Kolkata, West Bengal
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Shiv Kumar Agarwal
CA, Delhi
205 Answers
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1  It is advisable to maintain list of all receipts of professional fees, a list of all expenses connected with earning of such professional fees and all the assets used in discharge of profession to claim depreciation. A current account with a bank can be book, if you have a discipline to transact all transactions from this bank account.

2  All the expenses connected with services covered by directorship. If there is some connection with your profession such expenses can be claimed.

3  ITR 4

4. If you are using assets you can claim depreciation as expenses.
Vijay N. Kale
CA, Hyderabad
248 Answers
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It is a good practice to maintain such documentation to prove your income. If you feel it is burden, at least you can maintain supporting documoryents. Section 44AA makes it obligatory to maintain books above threshold limit of Income.
Vijay N. Kale
CA, Hyderabad
248 Answers
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Yes. He need to maintain Bank, Book, cash book, expenditure details.
Yes he can claim the expenditure provided he need to substantiate the same when asked for.
ITR 4
Shyam Sunder Modani
CA, Hyderabad
1277 Answers
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