Hello everyone,
I have a query about TDS 94T – payments to partner.
If partner is not drawing any salary & has no other income from firm, except profit share, he is withdrawing money on monthly basis on basis of expected profit share – in such case, is TDS applicable under section 94T.
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.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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