My company pays Rs 12 Lakhs as director's remuneration to an executive director. Should this be treated as salary and tds deducted u/s 192 or should I treat it as remuneration u/s 194J?
13 Replies
Yogesh Shukla
(Tax Practitioner)
(712 Points)
Replied 11 January 2014
Please provide the net profit of the company
If it is more than 10% of net profit- TDS should be deducted
less than 10%- no problem at all
It can not be treated as salary (no employee and employer relationship)
yogesh chokhra
(CA / CS Final)
(21 Points)
Replied 11 January 2014
if there is employee employer relationship TDS u/s192...otherwise TDS 194J(1)(ba) will be applicable....
u/s.194j(1)(ba) it becomes mandatory for all companies to deduct TDS @ 10% on sitting fees, commission paid to Director other then whole time director and M.D.
NADA REEM NAAZ
(ARTICLED ASSISTANT)
(30 Points)
Replied 11 January 2014
Can director's remuneration if considered under salary, claim HRA exemption??
Sachin Rajput
(account exe)
(593 Points)
Replied 11 January 2014
Mr. yogesh can u provide any notification regarding this.
Because as per my knowelge tds should be deducted on Director Remunaration.
Yogesh Shukla
(Tax Practitioner)
(712 Points)
Replied 11 January 2014
1) The remuneration to be bifurcated into salary and other remuneration.
2) TDS on salary shall be deducted u/s 192. Exemption limit is slab rate.
3) Limit of Rs. 30,000 is NOT APPLICABLE to directors remuneration.
Accordingly, TDS is required to be deducted even if the annual remmuneration is less than Rs. 30,000.
suleman mehraz
(Ca)
(38 Points)
Replied 12 January 2014
Is it that even a single rupee paid to a director calls for deduction Tds
suleman mehraz
(Ca)
(38 Points)
Replied 12 January 2014
And if not how do i calculate the amount of Tds to be deducted on directors remuneration???
Neha Jain
(accountant)
(57 Points)
Replied 12 January 2014
when we
pay salary to directors then we see income and deduction and apply dalry deduction rule
R.senthilkumar
(working)
(52 Points)
Replied 23 August 2014
Is tds applicable on director remuneration?
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