TDS on Int. & Salary to Partners
This query is : Resolved
25 July 2009
dear sir,
As a partnership firm, are we liable to deduct TDS on (1) int. pd to partners on his capital & (2) salary paid to partners ? AND in the hands of partner, is these two income liable to income tax ? OR both are exempt income as per I.Tax ?
thanks in advance
anckoora
As a partnership firm, are we liable to deduct TDS on (1) int. pd to partners on his capital & (2) salary paid to partners ? AND in the hands of partner, is these two income liable to income tax ? OR both are exempt income as per I.Tax ?
thanks in advance
anckoora
25 July 2009
No TDS is required to be made on interest and salary to partners. It is chargeable to tax in the hands of partners.
25 July 2009
As per section 194A(3)(iv) interest income credited or paid by firm to a partner of the firm is not subject to TDS. Thus, TDS is not required to be deducted on interest, but on salary you need to deduct as per the tax slabs.
both incomes will be taxable in the hands of partner.
Nazir
both incomes will be taxable in the hands of partner.
Nazir
25 July 2009
The salary or remuneration to a partner by a partnership firm is not charged under the head SALARY , but treated as “business income” in the hand of partner. Therefore, there is no question of TDS on salary or remuneration paid by the firm to the partners of a firm .
25 July 2009
Agree with all the experts.
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