Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 May 2014 Mr. A received salary from Co. X of Rs. 20000/- PM & TDS on the same is deducted by Co. X.
He opened his own company & receive Rs. 15000/- as Director remuneration.
Ques:-
Will TDS deduct on the amount of Director remuneration ? As Total amount of Director Remuneration does not exceed Taxable Limit of Rs. 200000/- & TDS is being deducted on the salary receiving from Co. X.
Please reply as soon as possible.

Rupesh Jain

Rupesh Jain (Expert)
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22 May 2014 he is not time director in his com. then you can deduct TDS u/s 194 J or if his is part time director then it consider as salary and deduct the tax accordingly.

you can intimate the income to X co then they deduct the tax . otherwise in his co. can deduct the tax after consider the X company salary.

Querist : Anonymous

Querist : Anonymous (Querist)

23 May 2014 Thank You Sir.
He is full time Director in his Company. And he is being deducting TDS, in X Co., on Rs. 20000/- under the head salary. So Is it necessary to deduct TDS in his Company on Rs. 15000/- ?
If his company not deduct TDS, on the part as his salary in his co. not exceeding Taxable limit, would receive any notice from Income Tax Department for not deducting TDS ?
Please guide.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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27 July 2025 Got it, here’s a clear explanation for your case:

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### Scenario Recap:

* Mr. A gets **Rs. 20,000/month salary** from Company X (TDS deducted by Company X).
* Mr. A is a **full-time director** in his own company and receives **Rs. 15,000/month as director remuneration**.
* Question: Does his own company need to deduct TDS on that Rs. 15,000 director remuneration even though total salary income (including from Company X) doesn’t exceed taxable limit?

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### Key Points:

1. **Director Remuneration = Salary**

* For a **full-time director**, the remuneration is considered **salary income**.
* TDS on salary is covered under **Section 192**.
2. **TDS Deduction Responsibility**

* Each employer/company is responsible for deducting TDS on salary it pays.
* So, Mr. A’s own company **should deduct TDS on Rs. 15,000** paid as director remuneration, irrespective of his other income from Company X.
3. **If Amount is Below Taxable Limit**

* If the director remuneration is below the **basic exemption limit** (e.g., Rs. 2,50,000 per annum as per current slabs), technically **no TDS needs to be deducted**.
* But the company should check whether **aggregate income** of Mr. A exceeds exemption limit. However, the company generally doesn’t have info about other income.
* Therefore, by default, the company should deduct TDS **unless Mr. A submits Form 15G/15H or declaration about non-taxability**.
4. **Risk of Not Deducting TDS**

* If your company does **not deduct TDS** when required, the company may receive **a notice from the Income Tax Department** for non-compliance.
* So, it's safer to deduct TDS unless proper declarations are received.
5. **Coordination Between Companies**

* Since Mr. A is getting salary from two companies, he should declare total income during filing.
* Both companies deduct TDS independently on the amount they pay.

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### Summary:

* Your company **should deduct TDS on director remuneration (Rs. 15,000)** unless the amount is below taxable limit **and** Mr. A submits a declaration of non-taxability.
* If no TDS is deducted, company risks notice/penalty.
* TDS on salary is on a **per employer basis**, not combined total.

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