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Discussion > Income Tax > Tax queries >

Tds on salary to directors

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d


[ Scorecard : 163]
Posted On 13 December 2011 at 16:34 Report Abuse

i need a clarification to income of director.

suppose a director earn rs 20,000/- per month as his remuneration in a pvt ltd co,so his total salary for the year will be 240,000/-.

my question is will tds be deducted from the salry?if yes then how it is calculated?

or there is no tds on director's salary he just has to pay according to the tax slab??in this case 10%

 

do help me on this conufusion


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CA Maulik Rachh
-


[ Scorecard : 114]
Posted On 13 December 2011 at 16:41

Sitting fee received by a director has to be taxed under the head “income from other source “ and not salary.

There is no provision for TDS on sitting fees payment and certainly not u/s 194J of the I T Act





Giridhar S Karandikar
Team Lead


[ Scorecard : 2834]
Posted On 13 December 2011 at 18:22

Calculate the total income from salary after considering the exemptions, PT etc.  After that deduct the amount as required u/s 80C, 80D etc..if any.

Calculate the tax after deductions under Chapter VI-A by applying the tax rate as per the respective slab rate.  The total tax that would be coming, divide it by 12.  This monthly amount should be deducted from the salary of the director by way of TDS.

I don’t think that remuneration paid to the director would be considered as Sitting Fee as pointed out by Mr Rachh.



Total thanks : 1 times



lexbery
d


[ Scorecard : 163]
Posted On 13 December 2011 at 22:46

dear mr giridhar,

as said by u after calculating and deducting all the exemptions the amount that comes we divide it by 12,this means all this will be done after 31st march rite??so how can i deduct tds monthly as deduction and all will be known only after end of the financial year.




Giridhar S Karandikar
Team Lead


[ Scorecard : 2834]
Posted On 14 December 2011 at 17:52

Dear lexberry, while calculating TDS on salary, we are required to take from the employee the amount of investments he will be making during the year at the beginning of the year & consider the tax payable accordingly.  In this way the total tax payable for the year is divided by 12 & TDS made each month.

Now if the employee submits any additional proofs of investments in the subsequent month(s) during the year, then again the total income less the total investments will be computed & TDS made accordingly for the remaining part of the year.

So in this way TDS is being calculated throughout the year and the Form 16 will be prepared accordingly.




lexbery
d


[ Scorecard : 163]
Posted On 14 December 2011 at 22:49

sir please read mi question...its a pvt ltd co,eg i beign the director in the pvt ltd co.




N.N.RAJAN
PROFESSIONAL


[ Scorecard : 187]
Posted On 14 December 2011 at 23:06

The answer by Mr. Giridhar is correct. The director has to be treated like as any other employee and tds deducted  accordingly. The deduction ofcourse need not be exactly divided by twelve and depends upon the decision of the concerned director. i.e., He may opt for lower deduction in earlier months and higher deduction in later months. Care should however by taken by the HR Manager that while deducting tds on salary in later months, salary should be available for deduction. It should not result in paying back of the tds amount by the director concerned.




Sunil
accounts officer


[ Scorecard : 21]
Posted On 22 August 2013 at 14:41

Sir,Our director's salary in Rs.200000/- per month,so i want to know how much % of TDS we should be deducted

 




CA Ganesh Kumar Das
Chartered Accountant


[ Scorecard : 38]
Posted On 05 September 2013 at 15:30

i also want to know how much % of TDS we should be deducted

managing director salary Rs. 200000 p.m

my id : ca.ganeshdas @ gmail.com, please send computation on this ID




vishwanath



[ Scorecard : 46]
Posted On 05 September 2013 at 23:30

tds will be deducted as per slab rate on net total income individual (after taking all deduction)

for example AY 14-15

income from salary 2lakh*12=24lakh

less: chapter VIA  1.15 lakh

80c 100000

80d 15000

net taxable salary 22.85 lakh

tax on above 5,30,965 Rs

tds per month to be deducted 44,247

net salary payable 1,55,753



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