ROY LUKOSE (ACCOUNTS MANAGER) (41 Points)
09 December 2009IF A WORKINGPARTNER DRAWING SALARY FROM THE FIRM , (SINCE THE SALARY OF PARTNER IS TREATED AS BUSINESS INCOME )SHOULD THE FIRM DEDUCT TDS ON SALARY , AND WHAT ABOUT PROVIDENT FUND WHETHER IT IS ALLOWED TO DEDUCT PF IF THE PARTNER WILLING TO CONTRIBUTE PLEASE CLARIFY
G.E.Sudarsan
(Audit Assistant)
(97 Points)
Replied 09 December 2009
TDS is not deducted for interest and salary paid / credited to the partners by the firn. PF is also no tapplicable for partners salary
Ansari
(ca final)
(444 Points)
Replied 09 December 2009
| Originally posted by :G.E.Sudarsan | ||
| " | TDS is not deducted for interest and salary paid / credited to the partners by the firn. PF is also no tapplicable for partners salary | " |
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8539 Points)
Replied 09 December 2009
TDS is not applicable to salary to partners salary as the section specifies the term as "any income that is chargeable under the head salaries". As partners salary is chargeable under the head Profits and Gains of Business and Profession, the firm is not liable to deduct tax at source on salaries.
Moreover, the provisions of PF and ESIC are also not applicable on such payments.
kabirsen
(student)
(251 Points)
Replied 09 December 2009
no tds to be deducted on salary 2 partner &interest to partner as they r nt chargeable under head salary of partner
Max Payne
(employed)
(2569 Points)
Replied 10 December 2009
There is a CBDT circular that TDS need not be deducted on interest on capital credited to partners' accounts. If any one can produce that here, thanks.
CA Parth Shah
(Chartered Accountant)
(369 Points)
Replied 10 December 2009
Agree with all the views.
luv tapas
(CA_Final)
(33 Points)
Replied 10 December 2009
Employer employee relationship doesnot exist in case of partner so don't deduct TDS. Provision of PF is not applicable on such payment.
AJAY AGARWAL
(Articleship)
(102 Points)
Replied 10 December 2009
Employer employee relationship doesnot exist in case of partner so don't deduct TDS. Provision of PF is not applicable on such payments
NARENDER PAWAR
(CA final Student)
(337 Points)
Replied 10 December 2009
tds is not applicable in case of salary or intt. paid to parters of a firm because partner's salary income is taxable u/s 28 under the head "income from bussiness & profession"
NARENDER PAWAR
(CA final Student)
(337 Points)
Replied 10 December 2009
tds is not applicable in case of salary or intt. paid to parters of a firm because partner's salary income is taxable u/s 28 under the head "income from bussiness & profession"
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