Reg:Directors Remuneration

Priya Sharma (Company Secretary & Student.MBA)   (998 Points)

12 November 2010  

Dear friends

A whole time Managing Director of a Private Company is getting sitting fees.

My question is , can it be included in his salary.

TDS has to be deducted, so will it be deducted u/s 192 or u/s 194(J) of IT Act, 1961.

As per my understanding, since the director is in whole time employment of the Company and therefore, he will be treated as the employee of the Company and since he is treated as the emplyee of the Company , then in that case TDS should be deducted under section 192.

Please guide and correct me if I am wrong.

Regards

Priya Sharma