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Fees for Professional or Technical Services i.e. "Director Remuneration" under Section 194J in Budget from this year.

In the Budget new provision under section 194J i.e. Directors Remuneration which required on Fees for Professional or Technical Services and TDS Will be deducted @ 10% on Fees for Professional or Technical Services. This amendment will be effected from 01st July, 2012 and applicable for Financial year 2012-13 (Assessment Year 2013-14).

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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