Tds on director remuneration

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This query is : Resolved

Goongan (Querist)

07 June 2012 Dear All,
We are going to pay director remuneration for the year 2012-13 on 10/06/2012. At which rate TDS should be deducted and at which rate, U/S 192 (Slab Rate) or 194J (@10%) as revised by F/A 2012.

Ca Anand Dubey

Ca Anand Dubey (Expert)

07 June 2012 If its a fee then 194J , otherwise if in the nature of salary u/s 192

Guest

Guest (Expert)

07 June 2012 Under the existing provisions of the Income-tax Act, a company, being an employer, is required to deduct tax at the time of payment of salary to its employees including Managing director/whole time director. However, there is no specific provision for deduction of tax on the remuneration paid to a director which is not in the nature of salary.

It is proposed to amend section 194J to provide that tax is required to be deducted on the remuneration paid to a director, which is not in the nature of salary, at the rate of 10% of such remuneration.

This amendment will take effect from 1st July, 2012.

Guest

Guest (Expert)

07 June 2012 194J(1)(ba)

Any remuneration or commission paid to director of the company(Effective from 1 July 2012)

Cut off amount is NIL

Rate of TDS is 10 %

Goongan

Goongan (Querist)

07 June 2012 We are going to deposit TDS on 10/06/2012 (i.e. before 1st July 2012), can I deposit TDS U/S 192 (i.e. under old provision)

Ca Anand Dubey

Ca Anand Dubey (Expert)

07 June 2012 what is the nature of remuneration?
if its salary then section 192 apply if its otherwise than salary (sitting fee, etc)then the new clause will be applicable

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