Tds on working partners salary / interest

Salary received by the Partner is taxable under the head Income from Business, there is no question of dedcuting TDS on salary u/s 192.

Regards,

Devendra Kulkarni

Ashwin ji,

TDs is not applicable on the salary paid to “partner” of the firm by the firm. The reason is that section 192 governs the deduction of tax at source from salary .The section 192 says as under:

“192(1) Any person responsible for paying any income chargeable under the head “Salaries” shall , at the time of payment ,deduct income –tax………”

The salary or remuneration to a partner by a partnership firm is not charged under the head salary , but treated as “business income” in the hand of partner. Therefore, there is no question of TDS on salary or remuneration paid by the firm to the partners of a firm.

well explained by ketanji