Tds on paetner salary

This query is : Resolved

yogesh mahajan (Querist)
Follow

29 November 2012 Sir,
Please tell me tds deduction on partner salary. Our firm is partnership firm. We are 3 partner each partner salary is 15000/- so we are not filing tds return FY-2012-2013 Because as per income tax act we are not cross the exemption limit. We have not register in company act & we have taken TAN Number. So please tell me TDS returns on salary filling is mandatory.

Thanks

Pankaj Gupta

Pankaj Gupta (Expert)
Follow

29 November 2012 For deduction of tax under sec 192 as salary, there must exist employer and employee relationship between the payer and payee.
As employer-employee relationship does not exist between a firm and partners.
Therefore firm is not liable for deduction of tax u/s 192.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

30 November 2012 Partner's remuneration is covered under section 28(v) of the Income tax Act,1961 meaning thereby it has to be offered and assessed under the head 'income from business' on which tax deduction under section 192 does not apply.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok