Tds on directors remuneration is to be deducted as per section 192 or 194J?
Can director remuneration be called as Salary?
What does section 194J (1)(ba) of Income tax act,1961 speaks about?
vinaya (Student CA IPC / IPCC) (74 Points)
10 July 2015Tds on directors remuneration is to be deducted as per section 192 or 194J?
Can director remuneration be called as Salary?
What does section 194J (1)(ba) of Income tax act,1961 speaks about?
CA RAHUL MITTAL
(article)
(80 Points)
Replied 10 July 2015
Deducted As per 194J, even director sitting fees below 5000.
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 10 July 2015
Further, there is no threshold limit of 30K for this.
Amit Tiwari
(Manager Finance & Accounts )
(32 Points)
Replied 10 July 2015
Any Amount paid other then director's Salary or whatever name U/s 194J (1)(ba) Applicable 10%
CMA Sivapriya
(-)
(238 Points)
Replied 10 July 2015
MUKESH
(...)
(21 Points)
Replied 11 July 2015
Gagan Deep Singh
(CHARTERED ACCOUNTANT)
(1190 Points)
Replied 11 July 2015
Akshay
(Senior Assistant)
(444 Points)
Replied 11 July 2015
chandana
(Article trainee)
(21 Points)
Replied 11 July 2015
srikumar
(audit staff)
(1203 Points)
Replied 12 July 2015
Arif Ali
(Apt Co Advisory)
(1230 Points)
Replied 12 July 2015
it is mention itself in u/s 194J. there are 5 clauses. it is clearly mention there that limit of 30000 is applied in case of all 4 clauses. And 5th clause is about director remuneration. so it is.
Akshay
(Senior Assistant)
(444 Points)
Replied 13 July 2015
Exactly as said by Arif Ali Section 194J (1) (ba) says we have to deduct TDS @ 10% on payment to directors for whom section 192 is not applicable (nothing but for non executive directors as I said earlier), what ever the name of payment is. And Proviso to sec 194 J (1) says such TDS of 10% to be made only when the amount paid exceeds Rs. 30,000 in case clauses a, b, c, and d. So as clause (ba) is not mentioned in proviso the limit of Rs. 30,000 is not applicable to payments made to directors. Hope I'm clear.
Akshay
(Senior Assistant)
(444 Points)
Replied 08 January 2016