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Relationship of partner and TDS in LLP

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rutuja prabhune

117 Points Posted on 05 October 2022

1) Is TDS u/s 192 on partner's salary, or interest on capital/ loan given to the LLP by a partner or Tds u/s 194 J on remuneration deducted? i.e. is TDS is to be deducted on any partner's income in LLP?

2) Is employee-employee relationship exists between a partner and LLP?

3) Is same Rule applicable for above two or partner and designated partner in LLP ?

Replies (2)

Quick Summary

This discussion clarifies the Tax Deducted at Source (TDS) implications for partners in a Limited Liability Partnership (LLP). It explains that TDS under Section 194T applies to remuneration, salary, bonus, or interest paid to partners if it exceeds £20,000 annually. The content also addresses the employer-employee relationship between a partner and the LLP, confirming that Section 192 for salary TDS is not applicable to partners.

veerendar singh

tax consultant

1829 Points Posted on 05 October 2022

Remuneration to partner wont get any application of sec. 192

Tax Garden

Tax Consultant

2036 Points Posted on 27 May 2026

Section 194T requires the firm or LLP to deduct TDS at 10% on salary, remuneration, commission, bonus, or interest paid to partners if the aggregate paid to that partner exceeds Rs 20,000 in the financial year. The threshold is per partner per year, not per individual payment, so if you pay a partner Rs 5,000 monthly and cross Rs 20,000 by the fourth month, TDS applies from that month forward. The return is filed in Form 26Q quarterly. This [LLP annual compliance guide](https://taxgarden.in/blog/llp-annual-compliance-form-11-form-8-due-dates-2026) covers Form 11, Form 8, and the TDS obligations under Section 194T for partners in one place.