Quick Summary
Section 194T is a newly inserted for TDS deduction proposed as per Clause 62 of Finance (No. 2) Bill, 2024. The scope of TDS u/s 194T is to include payment made by firms to its partners. Earlier, TDS was not applicable on partner’s remuneration, interest, commission etc. However, TDS was applica
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FAQ :
Section 194T is a new provision introduced by the Finance (No. 2) Bill, 2024, which requires firms to deduct TDS on payments made to their partners.
The provisions of Section 194T will be applicable from April 1, 2025.
Section 194T applies to payments such as salary, bonus, commission, interest on loans from a partner, and remuneration made to partners.
Yes, TDS under Section 194T is applicable only if the aggregate amount paid to a partner in a financial year exceeds £20,000.
The TDS rate under Section 194T is 10%.
Yes, Section 194T is applicable to firms, including partnership firms and LLPs.
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