Tds applicability under income tax act

This discussion clarifies the applicability of Tax Deducted at Source (TDS) on payments made to partners of a registered firm. It explores whether remuneration and interest paid to partners are subject to TDS under sections 192 and 194A of the Income Tax Act. The consensus suggests that neither interest nor remuneration paid to partners is subject to TDS, as these are taxable under the Profits and Gains of Business or Profession (PGBP) head in the hands of the partner.