Tds on director's remuneration

TDS 17222 views 13 replies

My company pays Rs 12 Lakhs as director's remuneration to an executive director. Should this be treated as salary and tds deducted u/s 192 or should I treat it as remuneration u/s 194J? 

Replies (13)

 Please provide the net profit of the company

If it is more than 10% of net profit- TDS should be deducted

less than 10%- no problem at all

It can not be treated as salary (no employee and employer relationship)

if there is employee employer relationship TDS u/s192...otherwise TDS 194J(1)(ba) will be applicable.... 

u/s.194j(1)(ba) it becomes mandatory for all companies to deduct TDS @ 10% on sitting fees, commission paid to Director other then whole time director and M.D.

 

yes u r right yogesh chokhra.

yes u r right yogesh chokhra.

Can director's remuneration if considered under salary, claim HRA exemption??

Mr. yogesh can u provide any notification regarding this. 

Because as per my knowelge tds should be deducted on Director Remunaration.

1) The remuneration to be bifurcated into salary and other remuneration.
2) TDS on salary shall be deducted u/s 192. Exemption limit is slab rate.
3) Limit of Rs. 30,000 is NOT APPLICABLE to directors remuneration.

Accordingly, TDS is required to be deducted even if the annual remmuneration is less than Rs. 30,000.

Is it that even a single rupee paid to a director calls for deduction Tds
And if not how do i calculate the amount of Tds to be deducted on directors remuneration???
when we pay salary to directors then we see income and deduction and apply dalry deduction rule
dalry deduction rule?
Sorry that is salary not dalary

Is tds applicable on director remuneration?

 


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