Tds related

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alpesh (Querist)

20 December 2016 dear sir whether may cilent has paid remuneration to partners and he is audited 44 AB whether he has deducted tds from remuneration of Rs 500000 per annum.it is deducted audited case or non audited case.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

20 December 2016 It is mandatory to deduct TDS on partner salary,bonus, commission or remuneration by whatever name called. Due to or received by a partner of a firm from the firm shall not be regarded as salary. Explanation 2 sec 15. It is taxable Under business income u/s 28

Kaushik Joshi

Kaushik Joshi (Expert)

20 December 2016 Dear Alpesh, TDS is NOT applicable for amount paid to partner, whether interest or remuneration.

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alpesh

alpesh (Querist)

20 December 2016 whether it is deducted in audit case only

alpesh

alpesh (Querist)

20 December 2016 whether it is paid to relatives for exceeding Rs 300000 then tds is applicable in such case only audit case.

Kaushik Joshi

Kaushik Joshi (Expert)

20 December 2016 Dear Alpesh, Since in your primary question the words used were payment to partner, I'm assuming your question is pertaining to TDS provisions applicable to a partnership firm. In this respect I wish to tell you that for a partnership firm tds provisions are applicable irrespective of the fact whether the firm is under audit or not. secondly where interest is paid to related party in excess of limit prescribed in 194A is Liable to TDS.

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