Summary of Section 194T

 Summary of Section 194T TDS on Payment to Partners(Resident as well as Non Resident)*

1. Section 194T casts an Obligation upon a firm Obligation is to deduct TDS on any sum paid or credited to a partner of the firm . 

2.The credit of the sum may be to any account of the partner, including his capital account.

3.Such sum paid or credited should be in the nature of salary, remuneration, commission, bonus or interest.

4.Such sum is paid or credited on or after 1-4-2025.

5.Deduction of TDS is to be at the rate of 10% of such sum.

6.Deduction of TDS is to be made at the time of credit of such sum to the account of the partner (including the capital account) or at the time of payment thereof, whichever is earlier.

7 Obligation to deduct TDS as above shall not apply where such sum or, the aggregate of such sums credited or paid or likely to be credited or paid to the partner of the firm does not exceed Rs 20,000 during the financial year.