TDS ISSUE FOR PARTNERSHIP FIRM

[satheesh m]

I am a partner of a Firm having 4 partners, running a franchisee business of a stock broker .The income is

 coming in my  name which is credited to the Firms current account . the

franchiser is remitting TDS in my  name as I have signed franchisee agreement with them and also they are

 paying commission in my name. The  firm files return and shows the My TDS  in the firm's account. The firm got a demand notice from IT department stating that the firm has to pay tax and the partner has to claim TDS refund. As per partnership act the amount received in the name of any partner on behalf of the firm can be treated as firm's income, why the IT department is not allowing to set-off the TDS. They are telling the new software doesn't allow to  set-off. What is the solution for this issue?????? WHY THE SOFTWARE IS MADE

 UNCOMPATIABLE WITH ACT?

AI Summary

Income Tax Dispute: Partner vs. Firm Over TDS Credit and Demand Notice Resolution Under Partnership Act A partner in a firm with four partners, operating a stock brokerage franchise, is facing an issue with the Income Tax Department. The franchiser credits income and remits TDS in the partner's name, but the firm files returns showing this TDS in its account. The firm received a demand notice from the IT department requiring it to pay tax while the partner claims a TDS refund. The partner questions why the department's software does not allow TDS set-off as per the Partnership Act, which permits income received in a partner's name to be treated as firm income. A response inquires if the issue has been clarified.