SECTION- 194T OF INCOME TAX ACT
“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.”
MAJOR POINTS OF SECTION 194T:
- Applicable rate of TDS is 10%.
- if amount paid or credited is more than Rs. 20,000/-
- Applicable date of Section 194T is 01st April 2025.