21 June 2012
Dear Mr. Sriram, If the director are non resident then Section 40(a)(i)shall be applicable and TDS will be deducted u/s 192 and not u/s 195.
If the directors are non resident and TDS is not deducted u/s 192 then salary paid will be disallowed u/s 40(a)(iii)
If the head is wrongly mentioned then it can be corrected within 7 days by informing the respective banks, else AO tds will rectify the mistake. The TDS is deposited after the due date then interest will paid @1.5% per month or part of the month from the date of deduction
CAclubindia
