Regarding 194T: TDS on Payment by Partnership Firm to Partners

Your question revolves around advance tax installments and TDS (Tax Deducted at Source) for a partner's income from a firm. Here's a breakdown: 1. _Advance tax installments_: The partner should continue paying advance tax installments on their income from the firm, including remuneration and interest. This is because advance tax is payable on estimated tax liability for the year. 2. _TDS by the firm_: The firm will deduct TDS on the partner's income, including remuneration and interest, as per the applicable rates. 3. _Late payment interest_: If the partner fails to pay advance tax installments or pays late, they will be liable for interest under Section 234C of the Income-tax Act, 1961. To avoid interest liability, the partner should: - Pay advance tax installments on time. - Ensure the firm deducts TDS on their income. - File their tax return (Form ITR-4) and pay any balance tax