Directors’ remuneration income refers to the compensation received by a company director for their services and responsibilities toward the company. This may include salary, commission, sitting fees, bonus, stock options, perquisites, and other benefits. Under the Companies Act, 2013, the board of directors and shareholders must approve remuneration structures, ensuring they comply with statutory limits. For income tax purposes, directors’ remuneration is considered taxable under the head “Salaries” if they are managing directors or whole-time directors, while sitting fees and other perks are also taxable as perquisites. Proper accounting, documentation, and board approvals are essential to maintain transparency, statutory compliance, and accurate reporting. Companies must deduct applicable TDS (Tax Deducted at Source) before payment and report the same in income tax filings. Timely compliance helps avoid penalties, ensures proper disclosure, and protects both the company and its directors from legal or regulatory issues. Professional guidance is often recommended to structure remuneration, ensure compliance with statutory provisions, and manage taxation efficiently.