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TDS on remuneration to directors

21 September 2019

what is the rate of TDS on remuneration to directors ? is it 10% u/s 192?

remuneration paid to partners every month like as salary, is there any slab to cut TDS on remuneration or directly cut 10% irrespective of their(individual directors) income less than basic exemption limit?

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15 Replies

LAXMIDHAR SAHOO (ARTICLES) (190 Points)
Replied 21 September 2019

Director remuneration comes under professional fees so prefer to deduct under section 194 J and there is no limit for deduction

2 Like

Sriram sri (61 Points)
Replied 21 September 2019

But director who is in full time employment need to deduct TDS u/s 92?

1 Like

RAJA P M ("Do the Right Thing...!!!") (127133 Points)
Replied 21 September 2019

TDS on Director's salary to be deductible u/s 192B as per slab rate

2 Like

Sriram sri (61 Points)
Replied 21 September 2019

How to deduct tds at the time of payment of remuneration? slab rate will be known only in the year end when ITR is filed, but form 24Q should file every quarter, how to deduct then?

1 Like

LAXMIDHAR SAHOO (ARTICLES) (190 Points)
Replied 21 September 2019

There may be two view either as employee under 192B as per slab or professional under 194J with no limit

1 Like

Sriram sri (61 Points)
Replied 21 September 2019

Bit slab rate will be known in year end? then how to deduct tds at the time of paying remuneration?

LAXMIDHAR SAHOO (ARTICLES) (190 Points)
Replied 21 September 2019

CTC would be there ..!!

1 Like

RAJA P M ("Do the Right Thing...!!!") (127133 Points)
Replied 21 September 2019

Calculate his total salary in a year (approximatly) and calculate as per slab rate. After that divide his tax liability (12 months). Deduct TDS in every month's salary. (must pay with cess).

Note : At the time of calculation ask his another incomes..

2 Like

LAXMIDHAR SAHOO (ARTICLES) (190 Points)
Replied 21 September 2019

Monthly * 12=total salary

2 Like

Sriram sri (61 Points)
Replied 21 September 2019

Yeah, i got it, thank you!

Suresh Thiyagarajan (Student) (3986 Points)
Replied 21 September 2019

1. Remuneration paid to directors will be covered u/s 194J and TDS need to be deducted @ 10% on every payment. Limit of Rs. 30,000 is not applicable in this case.
2. The abve amendment is made as per Finance Act, 2012.
Please correct me if the above solution has an alternative view.