Tds on director remuneration

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 June 2012 Dear Sir,
We pays remuneration to director on the 7th of next month. For Ex. June month remuneration we will pay on 6th July.Now as per amendment made by finance Act 2012, any amount paid to director after July 01 will be taxed U/s 194J.
- Whether this amt of remu. paid by us will be taxed U/s 192B or 194J ?
-As per our current practice we deposit TDS on this amount by Aug. 07 (if there were no amendment-as TDS on salary to be deposited on payment basis).

Pls provide me your expert openion in the matter
Thx.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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26 June 2012 Dear user,

This is not the case,section 194(1)(ba) clearly says that any remuneration or fees or commission by whatever name called, other than those on which tax is deductible under section 192, to a director of a company is deductible to tax.
Accordingly, TDS in your case will still be deductible u/s 192 only.