Section 62 - Insertion of new section 194T. - Finance (No. 2) Act, 2024

Insertion of new section 194T. 62. After section 194S of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2025, namely: Payments to partners of firms. 194T. (1) Any person, being a firm, responsible for paying any sum in the nature of salary, remuneration, commission, bonus or interest to a partner of the firm, shall, 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 shall, deduct income-tax thereon at the rate of ten per cent. (2) No deduction shall be made under sub-section (1) 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 twenty thousand rupees during the financial year. .