TDS on Salary paid to Partner

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Hanmantu N.Sai

Hanmantu N.Sai (Querist)
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20 June 2008 Anyone can tell me whether TDS deducted on payment of salary to partner in partnership firm?

CA Vivek Jain

CA Vivek Jain (Expert)
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20 June 2008 Yes

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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20 June 2008 I dont agree with you Mr. Vivek. Salary paid to a partner of a partnership firm is a business income for the recipient and not salary as defined under Sec 17. Hence the provisions of Sec 192 is not applicable in case of salary paid to a partner of a partnership firm & not tax need to be deducted.