TDS ON DIRECTORS REMUNERATION
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TDS ON DIRECTOR REMUNERATION
As per current provisions of Income Tax Act 1961, an employer has to deduct Tax at source on the salary paid to employees as per the provisions U/S 192 of Income Tax Act 1961, and in the scope of the term employee, it also includes Managing Director and Directors , and it provides that if an Director receives any remuneration other than in nature of Salary, Tax is not to be deducted at source.
And as per the amended provisions U/S 194J of income Tax Act 1961, it provides that as from 01st July 2012, If a director receives any remuneration other than in nature of Salary, tax to be deducted at Source @ 10% not cutted off with any limit.
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