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Directors' remuneration

SIVARAMAKRISHNAN P.G (CA final student) (129 Points)

06 March 2014

What is the method of deducting income tax on remuneration to directors of a company?

Is it u/s 194J-Fees for professional or technical services

u/s 192B-Salary???

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Deepak Gupta (CA Student) (15922 Points)
Replied 06 March 2014

Originally posted by : SIVARAMAKRISHNAN P.G
	What is the method of deducting income tax on remuneration to directors of a company? Is it u/s 194J-Fees for professional or technical services or u/s 192B-Salary???

> It depends on the director’s relationship with the company.
.
> If any remuneration/fee/commission by whatever name called paid to a director, which is not in the nature of salary, then tax is required to be deducted u/s 194J @ 10% w.e.f 01.07.2012. In this case there is no threshold limit of Rs. 30,000.
.
> When the payment is made on account of salary, then tax shall be deducted u/s 192, if the director is an employee of the company.

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naveen kumar (student) (57 Points)
Replied 06 March 2014

Perfectly explained

Bala Pullaiah B (Salaried) (179 Points)
Replied 06 March 2014

Depends on the relationship

V!$H@L $!ngh@L (free.........) (87 Points)
Replied 07 March 2014

deepak gupta -- good explanation.

thanks

Komal Agrawal (Article Student) (651 Points)
Replied 07 March 2014

it depends on relationship.............

but generally TDS is deducted u/s 192

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nikhil (NA) (22 Points)
Replied 07 March 2014

usually a whole time dirctor ll be done under 92, as it ll be more of employee employer relatnship... if dirctr is apptnd as a just a part time consultnt, than 94j