LIVE GST Certification Course by CA Arun Chhajer. Register Now!!

TDS on Director Sitting Fee

Arun Kumar Aggarwal (Service) (65 Points)

15 December 2007

Please give your opinion about the applicability of TDS on the payment of sitting fee to directors. What should be the rate? under which section ?

Arun Kumar Aggarwal

Reply
Follow
Share

6 Replies

Kumar M. Himanshu (CONSULTANCY, TAXATION) (29 Points)
Replied 15 December 2007

Note that Sitting Fees of directors is considered as Manegerial Renumeration (Salary) under the Companies Act & Income Tax Act. Thus TDS is deductable as per the same process as for TDS on Employee salary

Surendra (Finance) (71 Points)
Replied 15 December 2007

hi...
is the sitting fees paid to whole time directors or independent directors?
if it is for independent directors TDS need not be deducted (little bit doubt).. if it is for the whole time directors it must be treated as managerial remuneration and tds should be deducted u/s 192 of IT act....

(Guest)

TDS is calculated as per salary norms.

Mulchand Darji (Service) (38 Points)
Replied 18 December 2007

Dear, If Sitting fees paid to non executive director it will be treated as professional fees & accordingly TDS will be deducted u/s 194J.This director should only get sitting fee & not get any other remuneration.

1 Like

(Guest)

What will be the calculation of TDS of Director Remuneration for the A.Y. 2008-09? Will it be normal calculation as a normal assessee(Exempt up to 1,10,000/-)

(Guest)

What will be the calculation of TDS of Director Remuneration for the A.Y. 2008-09? Will it be normal calculation as a normal assessee(Exempt up to 1,10,000/-)