TDS u/s 94T - applicablity on profit share.

No TDS under Section 194T is applicable on monthly withdrawals taken by a partner purely against expected share of profit, provided:

• No salary / remuneration / interest is payable, and

• The amount is ultimately adjusted against profit share.

Thank you Ashok Kumar ji for your very clear reply.

Share of Profit exempt U/s 10(2A) not subject to TDS.

Section 194T covers only specific payments to partners: salary, remuneration, commission, bonus, and interest paid by the firm. Plain profit share (the partner's share of the firm's net taxable income under section 10(2A)) is not in that list and is not subject to 194T TDS. The confusion comes from monthly drawings, which often include a mix of advance against profit and actual remuneration. If the drawing is purely against expected profit share, no TDS applies. If any part is classified as salary or interest on capital under the partnership deed, that part is covered. You can check how the TDS section framework changed this year in this [FY 2026-27 TDS changes guide](https://taxgarden.in/blog/tds-tcs-changes-fy-2026-27-complete-guide).