TDS on remuneration to a director
Under the existing provisions of the Income-tax Act, a company, being an employer, is required to deduct tax at the time of payment of salary to its employees including Managing director/whole time director. However, there is no specific provision for deduction of tax on the remuneration paid to a director which is not in the nature of salary.
It is proposed to amend section 194J to provide that tax is required to be deducted on the remuneration paid to a director, which is not in the nature of salary, at the rate of 10% of such remuneration.
This amendment will take effect from 1st July, 2012.
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IF GOVERNMENT WANTS PUBLIC MONEY TO BE USED FOR NATIONAL AND GLOBAL
DEVELOPMENT….ON ALL FIXED DEPOSIT MORE THAN FIVE YEARS TDS SHOULD NOT BE DEDUCTED EVEN IF FORM 15 G OR 15 H GIVEN TO THE BANK OR OTHER INSTRUMENTS ON YEAR TO YEAR BASIS…FOR EXAMPLE NATIONAL SAVINGS SCHEME 6 YEARS KEEPING FOR THE NATIONAL GROOWTH OF INVESTMENT ..SHOULD BE WAIVED OFF ON TDS..
COMMON PUBLIC IS NOT BENEFITTING OR PARTICIPATING IN THIS TYPE OF GROWTH. NO NEED TO FILE RETURN IF HE OR SHE NOT CANCELLING THE FIXED DEPOSIT IN NSC BANK OR BONDS MORE THAN 5 YEARS OR MORE ( LET GOVERNMENT CAN DECIDE) THOSE TYPE OF DEPOSIT NEED NOT REQUIRED TO SUBMIT IT RETURNS…THIS TYPE OF POLCICY NO FINANCE MINISTERS SINCE INDEPENDENCE FOR THE COUNTRY GROWTH THINKING ON THIS….. WE ARE SAYING IF ANY DEPOSIT CANCELLED ON THIS TYPE OF SPECIAL DEPOSITS DIRECTLY PUT HEAVY FINE ON PRINCIPAL AND INTEREST…..HERE GOVT BENEFITED BY THIS NOTES….PLEASE THINK IN A LONG TERM GLOBAL PERSPECTIVE. IN THIS CASE U ARE UNWANTEDLY PAYING NRI MORE INTEREST FOR WHAT PURPOSE…THIS TYPE OF SPECIAL SCHEMEN U CAN BRING FOR NRI ALSO THOSE WHO ARE INVESTING LONGTERM IN INDIA …THOSE DEPOSITS NO NEED TO FILE ITAX RETURN SO ALL NRIS WILL INVEST WITHOUT FEARING TAX APPLICATION IF THE MONEY BROUGHT IN…..FINANCE MINISTRY PLEASE SEE THIS….
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r wrote on 17 March, 2012, 6:03
SPECIAL FIXED DEPOSIT /BONDS / MUTUAL FUND INVESTMENTS….THOSE TYPE OF INVESTMENTS GOVT CAN FIX THE PERIOD SAY 5 OR 7 OR 10 YEARS LIKE THAT
THOSE TYPE OF DEPOSIT SHOULD NOT GET ANY TDS EVEN IF FORM 15 G OR 15 H SUBMITTED.
GOVT CAN CHANNEL THIS TYPE LONG TERM INVESTMENT OF THE PUBLIC FOR INFRA AND OTHER INDUSTRIAL OR NATIONAL GROWTH ON VARIOUS SECTORS. SIMPLY PAYING INTEREST RATES IS NO USE… BEING AN INDIVIDUAL I WANT MY INVESTMENT SHOULD CARRY INTEREST PLUS I WANT MY FUND TO BE USED BY THE COUNTRY FOR GROWTH AND AS A MATTER OF FACT I DONT WANT MY FUND TO BE DEDUCTED ON TDS …AFTER MATURITY….WHY NO GOVT FUNCTIONED SINCE INDEPENDENCE ON BUDGET NOTES BRINGING THIS TYPE OF THINGS…SO ALL PEOPLE WILL PARTICIPATE IN THIS TYPE OF LONG TERM INVESTMENT….IF CANCELLED AS TOLD EARLIER PUT HEAVY FINE ON PRINCIPAL AND INTEREST SAY DEDUCT 20% ON PRINCIPAL IF HE OR SHE CANCELLING THE 5 YEARS OR GOVT FIX THE PERIOD FOR THOSE TYPE OF SPECIAL DEPOSIT….FINCANCE MINISTRY …PLEASE LOOK ON ,,,,,,,,