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TDS For Partnership Firm Pan

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Rajubhai Rathod

Salaried

36 Points Posted on 01 May 2021

Hi,

We have recently started IT service related partnership firm. We are working on Freelancing website as well and have corporate account there. We have marked that they are asking business PAN for compile income tax rules of Indian Government and they deducting TDS. My question is what will happen when they deposit tax to income tax? As I know we have to file individually ITR for partnership firm, How we can claim TDS?

Thanks!

Replies (3)

Quick Summary

This discussion clarifies the process for partnership firms regarding PAN and Tax Deducted at Source (TDS) in India. It explains that a partnership firm needs its own PAN, and TDS will be deducted and deposited against this firm PAN. The firm must then file its own Income Tax Return (ITR) to claim credit for the TDS deducted. Individual partners file their own ITRs separately and cannot claim TDS deducted in the firm's name.

CA Raj Doshi

Practising CA

5649 Points Posted on 01 May 2021

The Tax is deposited against partnership PAN. and you get credit of the same by filing the IT return.

Sivaramaraju G

Learner

1307 Points Posted on 01 May 2021

If you started business as partnership firm you need to have PAN on firm's name. then your service receiver will deduct TDS on firm's name and he will deposit against firm's PAN. then you have to file tax return on the name of the firm and you can claim credit of what ever they deducted on the name of TDS. your individual ITR is different from partnership firm ITR. you can't claim of TDS if it is deducted on firm's name.

sukhwani keyur

351 Points Posted on 01 May 2021

Partnership firm is required to obtain separate PAN as firm is assessed separately under the Income Tax Act. The websites where you work will deduct TDS while making payment to you. Once the financial year ends you need to file ITR of firm and can claim refund of this TDS or you may set off it against your tax liability. Partners are required to file their ITR separately. For more information you may mail us at taxclinictc @ gmail.com