Attention for all PROFESSIONALS HAVING PARTNERSHIP FIRMS AS THEIR CLIENTS – WHICH ARE LIABLE FOR TDS DEDUCTION u/s 194T FROM FY 2025-2026 AND ONWARDS.
PLEASE APPLY TAN NOW!!
Section 194T states that any payment made to a partner – whether it is salary, bonus, commission, interest, or remuneration – will be subject to a TDS rate of 10% if the total amount paid within a financial year exceeds ₹20,000.
Please note that – This rule applies to all firms, irrespective of their turnover or audit applicability!!
Hence, to comply with Section 194T, firms should apply and obtain TAN.
The best time to obtain TAN is now to prevent pressure of March finalization etc. Firms may face financial penalties for failure to deduct, deposit, or report TDS correctly.
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