Directors remuneration

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Querist : Anonymous

Querist : Anonymous (Querist)

02 April 2012 As there is amendment in union budget 2012 . If director's remunaration apart from salary is being paid, 10% deduction will be done on th said amount.
What difference basically its talking about.
Whatever remuneration we pay . consider as salary for I. Tax Act and deduct the tax according to slab rate.
Kindly clarify

CS Ankur Srivastava

CS Ankur Srivastava (Expert)
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03 April 2012 The above change will be in case of non executive directors remunerations i.e. not in the nature of Salary.

The remuneration paid to WTD/MD which are in the nature of salary are continue to be treated as salary. However, as earlier there was no separate provision for the treatment of remunerations paid to directors which are not in the nature of slary and thus it also included in the salary.

Now there is a separate provision and all the above remuneration paid to directors which are not in the nature of salary are to be covered under 194J and TDS will be deducted @10%.

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Querist : Anonymous

Querist : Anonymous (Querist)

03 April 2012 Means there will be exemption limit also upto 30,000.00 if covered under 194J?

CS Ankur Srivastava

CS Ankur Srivastava (Expert)
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03 April 2012 Yes section 194J will be applicable and accordingly the limits will also be applicable..

Querist : Anonymous

Querist : Anonymous (Querist)

03 April 2012 Thank you very much

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