28 October 2021
As per Section 16 read with Section 192 of Income Tax Act, 1961, all directors remuneration are treated as Salary and will be taxable under the head “Salary” and Company is required to deduct TDS except the sitting fees.
Further, as per the provisions of Section 194J of the Income Tax Act, 1961, Sitting fees which are given by company to its directors will be treated as professional fees and company is required to deduct TDS @10%.
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