The annual salary paid to director is Rs 3 lakhs and hence no tds is deducted u/s 192B as the director's income is not more than the exempted level after deducting 1 lakh u/s 80C. So will the company have to deduct tax @ 10% u/s 194J.
11 Replies
CA Nitin K. Varshney
(FCA DISA CCA Peer Reviewer (ICAI))
(616 Points)
Replied 30 July 2013
TDS on salary to directors is covered u/s 194J, so the provision of Sec 192 will not be applicable. Co, has paid total salary of 3 lac to directors. TDS of Rs, 30000 will be deducted on it u/s 194J.
RS
(none)
(298 Points)
Replied 30 July 2013
but isnt 194J about any payment made to directors other than salary in which 192B is applicable?
CA and CMA Ravinder Singh
(CA and CMA)
(853 Points)
Replied 30 July 2013
no..provisions of section 94J do not apply on salary paid to directors......it applies on remuneration paid other than salary.....the tds on salary will be deducted as per sec. 192 B.....
in your case, as the salary income dont exceed rs. 200000 after claiming deduction under section 80C, no TDS is required to be deducted.....
Mihir Doshi
(B.Com, CA, CS, LLB)
(2187 Points)
Replied 31 July 2013
It is well settle that the director in whole time employment in company who is drawing salary will have to offer his income under the head salary which attracts 192.
While director in professional capacity wont get any salary and draw remuneration in form of sitting fees etc which will be under 194J.
In your case 192 will be applicable and deduction will be made accordingly. Since there wont be any tax liability in your case, TDS wont be required to deduct.
Thanks
Mihir Doshi
CA Nitin K. Varshney
(FCA DISA CCA Peer Reviewer (ICAI))
(616 Points)
Replied 01 August 2013
Dear frnds,
I think salary also a part of remuneration. so sec 194J will be applicable in this case.
CA and CMA Ravinder Singh
(CA and CMA)
(853 Points)
Replied 01 August 2013
according to newly inserted clause 194J (1)(ba), remuneration paid other than those covered under section 192 is qualifying amount for calculating TDS liabilty under section 194J.....and section 192 covers TDS on salary.....
Abhishek Gupta
(Accounts Manager)
(97 Points)
Replied 16 July 2014
But how to establish such employer - employee relationship or services under professional capacity?
What if such directors are also the share holders of the company?
Request all to pls guide........
saurabh shahu
(Audit Assistant)
(142 Points)
Replied 18 July 2014
Dear,
Let me know that your director is Whole time director or Part Time.
If Director provide his services for whole time then the tds should be deducted U/s. 192B otherwise 194J TDS on Professional & Technical Services.
VINOD P
(ACCOUNT ASST)
(34 Points)
Replied 27 June 2016
DEAR SIR,
I WANT TO GIVE 70000 /- PER MONTH AS A DIRECTORS SALARY HOW MUCH TDS I SHOULD DEDUCT EVERY MONTH,
CA. Umesh kumar
(ca.umesh11@gmail.com)
(1465 Points)
Replied 27 June 2016
if director is a executive director/full time director then remuneration paid is covered under section 192 and tds will be applicable like any other employee, here director is considered as employee of company. if payment is made in the professional capacity like in case of a listed company payment will be made for attending board meeting here 194J apply and tds has to be deducted accordingly. may contact me for further clarification- 9911503621
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