Section 194T

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Shahan

accountant

147 Points Posted on 20 February 2025

194T Applicable effective from 24.25 f.y.

Replies (2)

Quick Summary

Section 194T of the Income-tax Act, 1961, introduces TDS requirements for two distinct scenarios. Firstly, it mandates a 5% TDS deduction on lottery, game, and sports winnings exceeding £10,000 per financial year, effective from April 1, 2024. Secondly, it applies to payments made to partners of a firm, such as salary, commission, or interest. For these partner payments, a 10% TDS is applicable if the aggregate amount exceeds £20,000 in a financial year, with this provision effective from April 1, 2025.

Rama chary Rachakonda

Master in Accounts & high court Advocate

7021 Points Posted on 21 February 2025

Section 194T of the Income-tax Act, 1961, is applicable from the Financial Year (FY) 2024-25. Key Points of Section 194T 1. *TDS on Winnings from Lotteries, Games, and Sports*: Section 194T mandates the deduction of Tax Deducted at Source (TDS) on winnings from lotteries, games, and sports. 2. *Threshold Limit*: TDS will be applicable on winnings exceeding ₹10,000 in a financial year. 3. *TDS Rate*: The TDS rate will be 5% of the winnings. Compliance Requirements 1. *TDS Deduction*: Deduct TDS on winnings exceeding ₹10,000 in a financial year. 2. *TDS Return*: File TDS returns (Form 26Q) quarterly. 3. *Issue TDS Certificate*: Issue a TDS certificate (Form 16B) to the winner. Effective Date Section 194T is applicable from April 1, 2024, and will be effective for the Financial Year 2024-25.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121526 Points Posted on 21 February 2025

w.e.f. 1-4-2025:

Payments to partners of firms.

194T. (1) Any person, being a firm, responsible for paying any sum in the nature of salary, remuneration, commission, bonus or interest to a partner of the firm, shall, at the time of credit of such sum to the account of the partner (including the capital account) or at the time of payment thereof, whichever is earlier shall, deduct income-tax thereon at the rate of ten per cent.

(2) No deduction shall be made under sub-section (1) where such sum or the aggregate of such sums credited or paid or likely to be credited or paid to the partner of the firm does not exceed twenty thousand rupees during the financial year.

TDS under section 194T is applicable with effect from 1-4-2025, not with effect from assessment year 2025-26.