Income Tax

CBDT amends quarterly TDS Statement for TDS on payments to partners by firm

CBDT amends quarterly TDS Statement for TDS on payments to partners by firm.

Section 194T of the Income Tax Act, 1961 has been inserted by the Finance (No. 2) Act, 2024, w.e.f. 1-4-2025.

As per the newly inserted section 194T, payment by a firm to its partners any salary/ remuneration, commission, bonus or interest has been subjected to Tax Deducted at Source @ 10 per cent where the aggregate of remuneration credited or paid or likely to be credited or paid to the partner of the firm does not exceed twenty thousand rupees.

CBDT has issued Notification No. 22/2025 dated 27.03.2025 to make corresponding amendments in quarterly TDS statements (Form 26Q) and Form 27Q.

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