Please let me know the TDS deduction on Partners Salary and Interest on capital at the time of payment or at the time of transferred the amounts to partners current account during finalasation of books of accounts for the FY 2025-26. Please Clarify
Please let me know the TDS deduction on Partners Salary and Interest on capital at the time of payment or at the time of transferred the amounts to partners current account during finalasation of books of accounts for the FY 2025-26. Please Clarify
There is no TDS deduction required on a partner's salary or interest on capital under the Income Tax Act. Consequently, the firm does not need to deduct any TDS, regardless of whether the amount is physically paid out or credited to the partner's current account during the finalization of books for FY 2025-26. The partner will pay tax on this income directly through their individual tax return.
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