https://www.taxtmi.com/caselaws?id=173496 Remuneration received by a chairman and managing director is taxable under the head "Salaries" where the articles of association create a contractual relationship of service. Although directorship alone does not ordinarily establish an employer-employee relationship, appointment terms that entrust the managing director with control and management of the company's business can establish service under a contract. Payments made pursuant to that relationship are salary income under Section 7 rather than income from other sources under Section 12. en-us Thu, 07 Mar 1946 00:00:00 +0530 Wed, 16 Sep 2015 18:02:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=173496 Remuneration received by a chairman and managing director is taxable under the head "Salaries" where the articles of association create a contractual relationship of service. Although directorship alone does not ordinarily establish an employer-employee relationship, appointment terms that entrust the managing director with control and management of the company's business can establish service under a contract. Payments made pursuant to that relationship are salary income under Section 7 rather than income from other sources under Section 12. Case-Laws Income Tax Thu, 07 Mar 1946 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=173496