TaxTMI 
TaxTMI 
Section 194T for TDS on remuneration/ interest paid to partners of partnership firm/LLP introduced by budget 2024 is applicable from 1st April 2025. So is this provision applicable for payments made for ay 2025-26.
CLARITY ON APPLICABILITY OF SECTION 194T FOR AY 2025-26
25 Dec 2024 
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Applicability of Section 194T: effective from the financial year beginning 1 April 2025, affecting the subsequent assessment year.
The debate concerns commencement of Section 194T (TDS on partner remuneration/interest) and whether an express commencement of 1 April 2025 makes the provision applicable to the financial year beginning that date. Contributors conclude the section-specific commencement controls over any general deemed commencement rule, so the provision governs the financial year starting 1 April 2025 and the corresponding assessment year. The discussion also flags a timing mismatch between TDS deduction and allowability of partner remuneration, and notes practical responses including delayed challan code availability and revising the fourth-quarter TDS return to correct excess deductions. (AI Summary)
The debate concerns commencement of Section 194T (TDS on partner remuneration/interest) and whether an express commencement of 1 April 2025 makes the provision applicable to the financial year beginning that date. Contributors conclude the section-specific commencement controls over any general deemed commencement rule, so the provision governs the financial year starting 1 April 2025 and the corresponding assessment year. The discussion also flags a timing mismatch between TDS deduction and allowability of partner remuneration, and notes practical responses including delayed challan code availability and revising the fourth-quarter TDS return to correct excess deductions. (AI Summary)