Tds on director remuneration

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Goongan (Querist)
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07 June 2012 Dear All,
We are going to pay director remuneration for the year 2012-13 on 10/06/2012. At which rate TDS should be deducted and at which rate, U/S 192 (Slab Rate) or 194J (@10%) as revised by F/A 2012.

Ca Anand Dubey

Ca Anand Dubey (Expert)
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07 June 2012 If its a fee then 194J , otherwise if in the nature of salary u/s 192

Guest

Guest (Expert)

07 June 2012 Under the existing provisions of the Income-tax Act, a company, being an employer, is required to deduct tax at the time of payment of salary to its employees including Managing director/whole time director. However, there is no specific provision for deduction of tax on the remuneration paid to a director which is not in the nature of salary.

It is proposed to amend section 194J to provide that tax is required to be deducted on the remuneration paid to a director, which is not in the nature of salary, at the rate of 10% of such remuneration.

This amendment will take effect from 1st July, 2012.

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Guest

Guest (Expert)

07 June 2012 194J(1)(ba)

Any remuneration or commission paid to director of the company(Effective from 1 July 2012)

Cut off amount is NIL

Rate of TDS is 10 %

Goongan

Goongan (Querist)
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07 June 2012 We are going to deposit TDS on 10/06/2012 (i.e. before 1st July 2012), can I deposit TDS U/S 192 (i.e. under old provision)

Ca Anand Dubey

Ca Anand Dubey (Expert)
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07 June 2012 what is the nature of remuneration?
if its salary then section 192 apply if its otherwise than salary (sitting fee, etc)then the new clause will be applicable