Re:- Relating to Director Salary & its TDS Provision

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This discussion clarifies whether an individual can simultaneously be a director and draw a salary from two different companies. While a person can hold directorships in up to 20 companies, they can only act as a whole-time director for one. Therefore, an individual can only draw remuneration from a single company, with TDS provisions under Section 192 or 194J applying accordingly.

Abhishek Roy

Abhishek Roy (Querist)

20 January 2021 Dear All,

Please confirm a query.
An Individual is a Director of 2 Companies Simultaneously
Can he withdraw Salary from both the companies at the same time, if so what are tds provision that can come into effect.
As we know:-
1) Those Director who are coming under the purview of employment, his salary/ remuneration will be liable to TDS U/s 192
2) Those Director who are not coming under such provision, his salary/ remuneration will be liable to TDS U/s 194J

Please suggest accordingly.

Dhirajlal Rambhia online

Dhirajlal Rambhia

(Expert)

01 December 2021 Section 165(1) of the Act states that a person can hold the office of director simultaneously in 20 companies. The number of 20 companies includes the office of alternate directorship.

Dhirajlal Rambhia online

Dhirajlal Rambhia

(Expert)

01 December 2021 No. A person can act as a whole time director of only one company and not more than one company. Hence he can draw remuneration from one company only.

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