Quick Summary
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
FAQ :
Section 194T is a new provision introduced by the CBDT that makes it mandatory to deduct Tax Deducted at Source (TDS) on payments such as salary, remuneration, commission, bonus, or interest made to a partner of a firm.
The changes introducing Section 194T are effective immediately from the date of their publication in the Official Gazette.
Forms 26Q and 27Q have been amended to include Section 194T under their respective TDS reporting requirements.
Partnership firms are now required to ensure they deduct TDS on all eligible payments made to their partners. Failure to comply may result in penalties and interest charges under the Income-tax Act.
TDS is mandatory on salary, remuneration, commission, bonus, or interest paid to a partner of a firm.
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