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Director remuneration

SHANU SHANKLESHA (ca) (58 Points)

22 June 2016

IS TDS to be deducted on remuneration paid to Director?

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Shishir Nayak ((Expert)) (369 Points)
Replied 22 June 2016

The newly inserted clause (1)(ba) of 194J says Any remuneration or fees or commission by whatever name called, other than those on which tax is deductible under section 192, to a director of a company shall liable to be deducted @ 10%.

CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 22 June 2016

As per section 194J, any person not being an individual or a Hindu undivided family, who is responsible for paying to a resident any sum by way of any remuneration or fees or commission by whatever name called, other than those on which tax is deductible under section 192, to a director of a company shall, at the time of credit of such sum to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to 10 per cent of such sum as income-tax on income comprised therein.