In the case of a director, however, the said monetary limit does not apply for the purpose of inclusion of the value of the amenity or benefit provided to a director free of charge. It so happens in some cases that a director of a company is also to look after the management of another company or a firm or an undertaking of the same management. In such a case, the director can so plan his tax affairs and the total emoluments that he enjoys from the tax-free perquisites or amenities from the other concern in which he is not a director, so that he pays the least tax.
In this manner the director, by proper tax planning, should be able to minimise his tax incidence in respect of the various amenities or benefits and perquisites granted by the employer or employers, as the case may be. |
