What is salary as per 194 j

Hi Madhu,

If there is contract of employment between company and the Director, then Sec 192 will Apply.

If Sec 192 is not applicable, Sec 194J will be attracted and Tax @ 10% should be deducted [i.e.under Sec 194J(1)(ba) ]

The limit of Rs.30,000/- is available only to Sec 194J(1)(a), (b), (c) and (d). But the limit is not applicable to Sec Sec 194J(1)(ba).

So, for even for single rupee Tax should be deducted @ 10%

Hi Manjunath,

Thanks for your valuable answer.

But if he is managing or Full time director can he take remunaration as 192 to avoid section 194 J

You are right. Obviously Section 192 is applicable for Managing & Full time Directors remuneration.

But you should have separate board/GM resolution for the appointment and remuneration

Thanks Manjunath.