Less deduction of tds

This query is : Resolved

dheeraj kumar (Querist)
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16 May 2014 Sir

i have less deducted tds from salary of director by Rs. 320000

now i have been asked to deposit the same
i am directly debiting director account

so no entry is to be passed on 31.3.2014

i will post the entry on 16.5.2014
as director salary 320000 to bank(being tds on salary for the year 13-14 deposited)

now how much interest is payable and under which section so no liabiity arises afterwards

pl explain

Sandeep Dharar

Sandeep Dharar (Expert)
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16 May 2014 U must revise ur return 26Q (194J). And pay the challan again. Interest will b applicable for the month of deduction + the delay month.

dheeraj kumar

dheeraj kumar (Querist)
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16 May 2014 it is salary being given to directors and comes under 24q and return is delayed and has not been filed till date

and please mention the section under which interest is payable and at what rate

Sandeep Dharar

Sandeep Dharar (Expert)
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16 May 2014 Dheeraj plz update remuneration to directors is deducted u/s 194J n not under salay coz, directors r not employees of the concern but r professionals. N Interest will come u/s 234E. For the month of deduction and delayed.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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16 May 2014 Dear Sandeep,

the querist never said that the director is not an executive one..the executive directors are paid salaries under 192b only.

dheeraj kumar

dheeraj kumar (Querist)
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17 May 2014 How to decide whether it is salary or fees under 194j

As per our company we pay them monthly salary and debit to director salary account and tds is deducted as per salary tds provisions

pl clarify when tds u/s 194j is applicable on payment to directors

Sandeep Dharar

Sandeep Dharar (Expert)
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17 May 2014 Directors Remuneration is Taxable as Professional Fees u/s 194J.

Sandeep Dharar

Sandeep Dharar (Expert)
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17 May 2014 Coz, they r eligible for resignation & reappointment.

dheeraj kumar

dheeraj kumar (Querist)
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17 May 2014 We are a limited company and our accounts are audited by chartered accountant

and we have been paying salary to directors for last 10 years

and tds is being deducted u/s 192b,

but our ca has never raised any objection

i think it depends on the nature of activities of director

if they are full time then it is salary if they come only for board meeting then it is fees

Sandeep Dharar

Sandeep Dharar (Expert)
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17 May 2014 Wait..

Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 May 2014 Dear dheeraj...independent and non executive directors will be paid professional fees. Executive directors will be paid salary

Sandeep Dharar

Sandeep Dharar (Expert)
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17 May 2014 Since there is no Employer Employee Relationship, hence TDS can't b deducted u/s 192B(Salary).

Plz visit the following links:-

https://www.caclubindia.com/articles/tds-on-remuneration-paid-to-directors-13422.asp#.U3b38HZqkk0

https://taxleader.blogspot.in/2012/06/tds-on-remuneration-paid-to-directors.html

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