CERTAIN SECTIONS OF INCOME TAX ACT RELATED TO TDS

SECTION 194J(1)(ba)

In accordance with newly inserted clause 1(BA) in Section 194J, TDS @ 10% is to be deducted from any remuneration paid to Directors of accompany. This clause reads as follows

“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 shall liable to be deducted @10%"

This issue has been divided into 2 parts

a)  Salary: Provisions of section 192 are attracted when the payments are made in the nature of salary. It clearly means that under such situations directors are considered as an employees of the company.

b) Professional services: It may be noticed that directors’ remuneration includes payments made to Directors for services rendered in any other capacity as per the Companies Act, 1956. To further clarify this type of payments to directors the relevant sections of companies Act, 1956 i.e. section 198 and 309 can be relied upon.  This section reveals that remuneration paid to whole time director/ managing director include payments made on account of Commission, Sitting fees,any other fees paid for rendering professional services.

It is now clear that before amendment section 194J used to apply only on amount paid for professional and technical services but with above said insertion, the sitting fees and commission paid and any payment by whatever name are dragged in Section 194j

SECTION 271H

Failure to deliver statement within time prescribed u/s 200 (3) or to the proviso to sub-section (3) of section 206C may liable to penalty which shall not be less than Rs. 10,000/- but which may extend to Rs. 1,00,000/-. No penalty if payment of tax deducted or collected along with fee or interest and delivering the statement aforesaid before the expiry of 1 year from the  time prescribed for delivering the such statement. However No penalty shall be imposed u/s 271H if the person proves that there was reasonable cause for the failure.(section 273B).

Here is brief description

Sl. No	TDS Statement	Due date	Date up to which no penalty u/s 271H can be imposed
1	30th June	15th July 2013	15th July 2014
2	30th September	15th October 2013	15th October2014
3	31st December	15th January 2014	15th January 2015
4	31st March	15th May 2014.	15th May 2015

194-IA

Clause 42 of the Bill seeks to insert a new section 194-IA in the Income-tax Act relating to payment on transfer of certain immovable property other than agricultural land.

It is proposed to insert a new section 194-IA to provide that any person, being a transferee, responsible for paying (other than the person referred to in section 194LA) to a resident transferor any sum by way of consideration for transfer of any immovable property (other than agricultural land) shall deduct an amount equal to one per cent. of such sum as income-tax at the time of credit of such sum to the account of the transferor or at the time of payment of such sum in cash or by issue of cheque or draft or by any other mode, whichever is earlier.It is further proposed to provide that no deduction shall be made where consideration for the transfer of an immovable property is less than fifty lakh rupees.It is also proposed to provide an Explanation defining the expressions "agricultural land" and "immovable property".This amendment will take effect from 1st June, 2013.

This article is compiled by Student of ICAI SHUBHI GOEL. She can be reached at Shubhigoel1989@gmail.com

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