Please refer Memorandum of Direct Taxes of Finance Bill, in which it has been clearly stated:
"Under the existing provisions of the Income-tax Act, a company, being an employer, is required to deduct tax at the time of
payment of salary to its employees including Managing director/whole time director. However, there is no specific provision for deduction of tax on the remuneration paid to a director which is not in the nature of salary.
It is proposed to amend section 194J to provide that tax is required to be deducted on the remuneration paid to a director,
which is not in the nature of salary, at the rate of 10% of such remuneration.
This amendment will take effect from 1st July, 2012."
Director Remuneration is not covered under Sec 194J