What is TDS code 1028 — director remuneration?

Key mapping

Code 1028 covers TDS on director remuneration (non-salary). Rate: 10%. No threshold — TDS applies from the first rupee.

Explanation

Under IT Act 2025 §393, Code 1028 replaces Section 194J(b) as applicable to director remuneration (fees, commission — not salary). There is NO minimum threshold; TDS is deducted from rupee one. Rate is 10%. Salary paid to a whole-time/executive director is taxed under §392 (salary TDS) at slab rates. This code specifically covers sitting fees, commission and other non-salary payments to directors.

Related terms and sections

1028 director remuneration director fees sitting fees no threshold 10 percent 194J section 393 TDS

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Related sections

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All section references are sourced from the Income Tax Act 2025 (official gazette, incometaxindia.gov.in) and cross-referenced against CBDT's comparative statement. Always verify on the official portal before filing. This page is for reference only and does not constitute legal or tax advice.

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