Section 194T : Payments to partners of firms - Income Tax - Ready Reckoner - Income Tax

Payments to partners of firms [ Section 194T ] [ Inserted Vide Finance (No. 2) Act, 2024 w.e.f 01.04.2025 ] Nature of Payment to be made 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. Time of deduction of TDS 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 Rate of TDS - 10% No requirement of deduction of TDS No deduction shall be made 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 20,000/- during the financial year .