https://www.taxtmi.com/caselaws?id=178250 Remuneration paid to a company director under the articles of association, without any separate contract of employment, is not salary unless an employer-employee relationship exists. Section 7 of the Indian Income-tax Act applies only where payment is made by an employer to an employee, including salary, wages, fees, commissions, perquisites or profits in lieu of salary. A director receiving payment only in that capacity is not necessarily a servant or employee of the company, and even a gratuity falls within the salary head only if paid by an employer to an employee. The remuneration was therefore not taxable as salary under Section 7 and was assessable as income from other sources under Section 12. en-us Wed, 11 Sep 1946 00:00:00 +0530 Mon, 01 Feb 2016 10:22:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=178250 Remuneration paid to a company director under the articles of association, without any separate contract of employment, is not salary unless an employer-employee relationship exists. Section 7 of the Indian Income-tax Act applies only where payment is made by an employer to an employee, including salary, wages, fees, commissions, perquisites or profits in lieu of salary. A director receiving payment only in that capacity is not necessarily a servant or employee of the company, and even a gratuity falls within the salary head only if paid by an employer to an employee. The remuneration was therefore not taxable as salary under Section 7 and was assessable as income from other sources under Section 12. Case-Laws Income Tax Wed, 11 Sep 1946 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=178250