TDS

Dear Shikha,

The salary given to partners is only an appropriation of profits.There is no employer-employee relationship between the partners and the firm.Hence the salary to partners does not fall under sec 192B.

The partners, however are subject to tax on the salaries received from the firm in their individual capacity.It means that they will be including salary from firm in their individual income tax return and will be paying tax on the salary.

I agree with Fatema.

Thanks!

Fatima Is right................

fatema is right

Fatima is coorect - no TDS on partners remuneration as the same is only the appropriation of the profit

Dear all,

Please spell my name correctly...it is fatema and not fatima

Agreed with Fatema, No Tax deduction is required as there is no employer - employee relationship and also it is appropriation of profits.

 Partner getting the distribution of profit from business & Profession income. so tds not have to deducted on salary. and if a partner getting salary & interest from firm who aggregate income is above 40Lac then it's necessary to conduct an tax audit. 

Dear Manish,

Salary given to partners in excess of what they are entitled to get according to the slab rates given in the Income Tax Act is disallowed while computing the tax liability of the firm.

So no TDS should be deduted on salaries to partners

THANKS

Well Explained by Ms. fatema.