Friends, In budget 2012, Director Remuneration will be covered under section 194J and TDS will be deducted @ 10% under Fee for professional or technical services under section 194J.
This amendment will be applicable w.e.f. 01-07-2012
Section :- 194J
Subject :- Fees for Professional or technical services
w.e.f. :- 01-07-2012
Changes :- Payment to a director of a company any sum by way of any remuneration, fees or commission Which is not a salary shall also attract TDS of 10%
For more Clarity read exact words as per Chapter III of Income Tax Act : -
In section 194J of the Income-tax Act, in sub-section (1), after clause (b), the following clause shall be inserted with effect from the 1st day of July, 2012, namely:—
“(ba) any remuneration or fees or commission by whatever name called, other than those on which tax is deductible under section 192, to a director of a company; or”.