Monday, March 26, 2012

Director Remuneration under section 194J

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”.

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