Salary/remuneraion to wkg. director tds u/s. 192 or 194 (j)

 Sec. 194J (ba) provides that 'any remuneration or fees or commission by whatever name called, other than those on which tax is deductible under sec. 192, to a director of a company' shall liable to deduct @ 10% tds.

Sec. 194J (ba) only apply where tds is not deducted under sec. 192 i.e. in case of remuneration to non executive director.

Please refer Memorandum of Direct Taxes of Finance Bill, in which it has been clearly stated:  

"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.   I

t 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."   Director Remuneration is not covered under Sec 194J

Thanks//Vaibhav
 

Salary to WTD/MD/ED will attract 192.

Remuneration to Part time directors -- section 194J.

No doubt about that.

Originally posted by : Dipjyoti Majumdar
	Salary to WTD/MD/ED will attract 192. Remuneration to Part time directors -- section 194J. No doubt about that.

Agreed