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Tds u/s- 192-salary

siri (CFO) (174 Points)

19 January 2011

hi frnds good evening to all...........

my doubt is, if an firm pays remuneration to its partners and that remuneration exceeds the taxable limits then that firm is liabile to deduct tds u/s- 192, or

is sec.192 is applicable only for employer & employee relationship?

thans in advance

siri.

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6 Replies

Pankaj Arora (Learner) (3134 Points)
Replied 19 January 2011

Remuneration does not come in the definition of salary hence you can’t deduct tds u/s 192 on remuneration of partner.

CA MAULIK (C.A) (937 Points)
Replied 19 January 2011

no que of employer employee relation...as here parners are employee --as well as employer...so no que of tds

Ashish Sharma (Service) (1028 Points)
Replied 20 January 2011

Salary paid to partners of firm is business income in hands of partners as per secton 28(v) of Income Tax so no TDS on remuneration of partner in Partnership firm.

siri (CFO) (174 Points)
Replied 20 January 2011

okkkkkkk. thanks,

siri.

preethi (student) (253 Points)
Replied 20 January 2011

According to sec192 " any person responsible for paying any income chargeable under the head 'salaries' shall liable to TDS".

As per Sec 15(2) defines salaries as," Any salary, bonus, commission or remuneration by whatever name called due to or received by a partner from a firm shall not be regarded as salary" so no question of TDS in this situation......