Quick Summary
TDS on payment of salary, remuneration, interest, bonus or commission by partnership firm to partners
Presently there is no provision for deduction of tax at source (TDS) on payment of salary, remuneration, interest, bonus, or commission to partners by the partnership firm. Hence, it is proposed that a new TDS section 194T may be inserted to bring payments such as salary, remuneration, commission, bonus and interest to any account (including capital account) of the partner of the firm under the purview of TDS for aggregate amounts more than Rs 20,000 in the financial year. Applicable TDS rate will be 10%.
2. The provisions of section 194T of the Act will take effect from the 1st day of April, 2025.
[Clause 62]
FAQ :
A new TDS section, 194T, will be inserted to bring payments such as salary, remuneration, commission, bonus, and interest made by a partnership firm to its partners under TDS purview.
The provisions of section 194T will take effect from the 1st day of April, 2025.
Payments subject to TDS include salary, remuneration, commission, bonus, and interest paid to any account of the partner, including the capital account.
TDS will be applicable for aggregate amounts exceeding £20,000 in a financial year.
The applicable TDS rate will be 10%.
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