TDS on partner payments: firms must deduct tax on partner remuneration when credited or paid, with small-payment exemption. A firm paying sums in the nature of salary, remuneration, commission, bonus or interest to a partner must deduct income-tax at the rate of ten per cent at ... Summary
TDS on partner payments: firms must deduct tax on partner remuneration when credited or paid, with small-payment exemption.
A firm paying sums in the nature of salary, remuneration, commission, bonus or interest to a partner must deduct income-tax at the rate of ten per cent at the time of credit to the partner's account (including capital account) or at payment, whichever is earlier. No deduction is required where the aggregate of such sums to the partner in a financial year does not exceed twenty thousand rupees.
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