TDS on partners remuneration u/s 194 T

Any TDS will be deducted on Income as per limits and other conditions and not on expense reimbursements

Section 194T is applicable on payment made/credited on account of Salary/ Commission/bonus/Interest to partners exceeds Rs. 20000 in a financial year year.

A partnership firm is generally required to deduct TDS under section 194T on interest paid or credited to partners, as well as salary, remuneration, commission or bonus. The provision applies where the aggregate of these amounts for a partner exceeds ₹20,000 during the financial year; TDS is at 10%, generally at credit or payment, whichever is earlier. Interest on capital is covered, subject to the partnership deed and section 40(b) limits for tax deductibility.

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