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?
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 tds applicable on director remuneration?
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