Tax deduction at source on payments to partners: firms must deduct income-tax on partner remuneration and interest. Any firm paying a partner interest on capital or salary, bonus, commission or remuneration must deduct income-tax at the time of credit or payment on the estimated amount due for the financial year at the average rate of income-tax for that year; the firm may adjust deductions to correct prior excesses or deficiencies. A partner receiving such payments from multiple firms may furnish prescribed details of payments and tax deducted by other firms, and a partner with additional income may supply particulars of that income and tax so the paying firm may take them into account when making the deduction, subject to a proviso preventing reduction below the otherwise applicable deduction.
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Tax deduction at source on payments to partners: firms must deduct income-tax on partner remuneration and interest.
Any firm paying a partner interest on capital or salary, bonus, commission or remuneration must deduct income-tax at the time of credit or payment on the estimated amount due for the financial year at the average rate of income-tax for that year; the firm may adjust deductions to correct prior excesses or deficiencies. A partner receiving such payments from multiple firms may furnish prescribed details of payments and tax deducted by other firms, and a partner with additional income may supply particulars of that income and tax so the paying firm may take them into account when making the deduction, subject to a proviso preventing reduction below the otherwise applicable deduction.
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