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Tds on salary & directors remuneration (Income Tax)

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This query is : Resolved



( Author )
25 May 2012

at what rates tds should be cut on the remuneration to employees and directors ???

the directors draw a remuneration on only 2L however due to there other incomes from other personal businesses go upto 30% slab rates !! so should we also cut the tds asper 30% slab rate ????


Siddhartha Bhardwaj

( Expert )
25 May 2012

TDS on salary paid to employees shall be deducted u/s 192.

For this purpose, the estimated annual salary will be computed and tax will be calculated on the same.

Remuneration to directors shall be bifurcated into salary and other remuneration.

TDS on salary shall be deducted u/s 192 and on other remuneration u/s 194J @ 10%


CA PRAVEEN SINGH

( Expert )
25 May 2012

LLUSTRATION:

Suppose that the income chargeable under the head “salaries” of a male employee below sixty years of age for the year inclusive of all perquisites is Rs.4,50,000/-, out of which, Rs.50,000/- is on account of non-monetary perquisites and the employer opts to pay the tax on such perquisites as per the provisions discussed in para 3.2 above.

STEPS:



Income Chargeable under the head “Salaries” inclusive of all perquisites:
Rs. 4,50,000
Tax on Total Salaries(including Cess):
Rs. 27,810
Average Rate of Tax [(27,810/4,50,000) × 100]:
6.18%
Tax payable on Rs.50,000 = (6.18% of 50,000):
Rs. 3,090
Amount required to be deposited each month:
Rs. 260(257.5)
(3090/12)
TDS ON DIRECTOR SALARY IS DEDUCTED U/S192& SITTING FEES & COMMISSION IS DEDUCTED U/S 194J.


Prinesh

( Author )
25 May 2012

thanks :) was usefull !


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