https://www.taxtmi.com/caselaws?id=37845 A managing director's remuneration is taxable as salary under section 7 only if the articles and governing terms show a contract of service rather than an independent office. Where the office-holder was appointed for life as first and permanent director, chairman and managing director, and could appoint and remove additional directors, those powers were inconsistent with servant status, so the remuneration from that company was not salary. By contrast, where the articles kept control with the board, required compliance with board resolutions, and restricted powers on important matters, the managing director remained subject to supervisory control and the remuneration was salary. The tax treatment thus depended on the true nature of the office under the articles. en-us Fri, 30 Sep 1977 00:00:00 +0530 Thu, 01 Apr 2010 13:52:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37845 A managing director's remuneration is taxable as salary under section 7 only if the articles and governing terms show a contract of service rather than an independent office. Where the office-holder was appointed for life as first and permanent director, chairman and managing director, and could appoint and remove additional directors, those powers were inconsistent with servant status, so the remuneration from that company was not salary. By contrast, where the articles kept control with the board, required compliance with board resolutions, and restricted powers on important matters, the managing director remained subject to supervisory control and the remuneration was salary. The tax treatment thus depended on the true nature of the office under the articles. Case-Laws Income Tax Fri, 30 Sep 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37845