Directors remunertion

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 February 2013 We have paid the director remunertation on monthly basis and deducted 10% TDS under 92B.does we need to do change it to 94J. if yes how to do the same.

CA. Sunil Kumar

CA. Sunil Kumar (Expert)
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21 February 2013 —In section 194J of the Income-tax Act, in sub-section (1), after clause (b), the following clause shall be inserted with effect from the 1st day of July, 2012, namely :—

"(ba) 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 ; or".

For above it is clear that

it becomes mandatory for all the companies to deduct TDS @ 10% on sitting fees, commission paid to directors other than whole time directors and managing directors.

Remuneration to Whole time Director/managing Director still cover in section 192.