Tds issue

This query is : Resolved

TARIQUE RIZVI (Querist)
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29 October 2015 There is a Private Ltd Company consisting of six whole time directors from 01-10-2015 and each of them shall be paid as follows: Monthly will be Rs.20,833/= and six-monthly will be Rs 1,25,000/=
1) Basic Pay Rs. 1,25,000/-
2) House Rent Allowance Rs. 62,500/=
3) Conveyance Allowance Rs. 1600/=
4) Children’s Educational Allowance Rs. 1,200/=
5) Medical Reimbursement/Expenses Rs. 15,000/=
6) Supplementary Allowance Rs. 44,700/-
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Total Rs , 2,50,000/= per annum
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Monthly Rs 20,833/= has to be paid
Six Monthly will be as of Rs. 1,25,000/=

Whether TDS shall have to be cut down @ 10% on 20,833/= i.e. Rs 2,145/= each and every month after providing monthly sum of Rs 20,833 as follows:

TDS on Rs 20,833 = Rs. 2,083/=
Cess 3% on Rs. 2,083/= Rs. 62/=
Total TDS Rs 2,145/=

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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30 October 2015 Deduct TDS u/s 192 considering it as salary payment as the directors are whole time directors.

TARIQUE RIZVI

TARIQUE RIZVI (Querist)
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30 October 2015 It's a remuneration to directors comes under salary code and Amt payable is less than 250000 exempt income no tds is applicable because the directors are being paid just Rs 1,25,000/- for the period from 01-10-2015 to 31-03-2016 [ Ay 2016-17 ] as such neither TDS shall be deducted nor shall be deposited into the government treasury. The total remuneration of this type paid or provided is allowable.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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30 October 2015 Yes it is allowable.......

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