The Central Board of Direct Taxes (CBDT) has issued the Income-tax (Seventh Amendment) Rules, 2025, introducing key changes to the Income-tax Rules, 1962. The notification, published in the Official Gazette, amends Forms 26Q and 27Q, incorporating Section 194T of the Income-tax Act, 1961.
Key Amendments
Introduction of Section 194T
- A new section, 194T, has been added, making it mandatory to deduct TDS on salary, remuneration, commission, bonus, or interest paid to a partner of a firm.
Changes in Form 26Q & 27Q
- Form 26Q: The heading now includes Section 194T alongside existing provisions.
- Form 27Q: The form now includes 194T under TDS reporting requirements.
Impact on Taxpayers & Businesses
- Partnership firms will need to ensure TDS compliance on payments to partners.
- Non-compliance may attract penalties and interest under the Income-tax Act.
This amendment aligns with the government's efforts to streamline tax compliance and enhance TDS reporting accuracy. The changes are effective immediately from the date of publication.
Official copy of the notification has also been attached
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