Directors remuneration
This query is : Resolved
23 March 2012
As per Union Budget 2012. It has been announced that Directors Remuneration will attract the provisions of sec.194j.Then the Remuneration received by The Directors Taxable under The Head Income From Business or Profession(as per 194j-professional services).
Or the remuneration received by the director taxable under the head salary.
If the directors remuneration is taken under the head Business or profession.
Then whether it is compulsory to make tax audit for directors if income exceeds tax audit limit u/s 44AB of Rs. 25 lakhs.
Or the remuneration received by the director taxable under the head salary.
If the directors remuneration is taken under the head Business or profession.
Then whether it is compulsory to make tax audit for directors if income exceeds tax audit limit u/s 44AB of Rs. 25 lakhs.
23 March 2012
TDS will be deducted under section 194J only on the amount which is in the nature of salary, normally remunreation is given as a salary, only for part time directors this provision has of much relevance, but if audit limit is crossed then liable for it.
Message likes :
1 times
23 March 2012
i) If tax is deducted under section 192, the concerned Director has to offer the income under the head 'income from salary' and has to file the return accordingly.
ii) If tax is deducted under section 194J (courtesy to Finance Bill 2012), return has to be filed by the said Director offering the income under the head "Income from business/profession" and if such professional income exceeds the limits of 44AB, tax audit also becomes mandatory.
Therefore, selecting the section of tax deduction needs judgement after analyzing the underlying facts of the appointment.
ii) If tax is deducted under section 194J (courtesy to Finance Bill 2012), return has to be filed by the said Director offering the income under the head "Income from business/profession" and if such professional income exceeds the limits of 44AB, tax audit also becomes mandatory.
Therefore, selecting the section of tax deduction needs judgement after analyzing the underlying facts of the appointment.
Message likes :
5 times
24 March 2012
dear nikhil Bhaiya
tds u/s 194j is deducted for Professional/Technical charges/Royalty & Non-compete fees.
but you have mentioned as salary.
will you please clear about it as well as for part time director.
B.Chakrapani Warrier has given a very good point of recognition of remuneration under the head salary or PGBP for proper planning.
please clarify
sir
tds u/s 194j is deducted for Professional/Technical charges/Royalty & Non-compete fees.
but you have mentioned as salary.
will you please clear about it as well as for part time director.
B.Chakrapani Warrier has given a very good point of recognition of remuneration under the head salary or PGBP for proper planning.
please clarify
sir
Message likes :
1 times
24 March 2012
I am very sorry Its my Mistake, I was intended to write as 'which is not in the nature of salary'.....Pls. correct it....
Thanks B. Chackrapani Sir for your advice.
As regards, part time director remuneration given to them is not for engaging in day to day work and normally they are not employee of Company, in that case TDS will be deducted under Section 194J. As per opinion, in this Budget it is just a clarification, even before, this treatment would have been made.
Thanks B. Chackrapani Sir for your advice.
As regards, part time director remuneration given to them is not for engaging in day to day work and normally they are not employee of Company, in that case TDS will be deducted under Section 194J. As per opinion, in this Budget it is just a clarification, even before, this treatment would have been made.
Message likes :
2 times
26 March 2012
Thank You Nikhil Bhaiya .... Thanks a lot for your Proper Guidence.....
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST ITC REVERSE
- Fixe term employment
- Is any professional CA is here please reply
- Reprocessing of rectification order AY 2025-26
- FTS Taxable under 115A
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- Section 50-fixed asset-->building ceases to exist
- Putting a heading on received mail
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- RCM ISSUE ON RENT AND TRANSPORTATION CHARGES
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
