Is TDS applicable on salaries to Partners?
Rgds
Shikha
Shikha Bajaj (CA ) (433 Points)
28 December 2009Is TDS applicable on salaries to Partners?
Rgds
Shikha
FATEMA
(CHARTERED ACCOUNTANT)
(719 Points)
Replied 28 December 2009
Dear Shikha,
The salary given to partners is only an appropriation of profits.There is no employer-employee relationship between the partners and the firm.Hence the salary to partners does not fall under sec 192B.
The partners, however are subject to tax on the salaries received from the firm in their individual capacity.It means that they will be including salary from firm in their individual income tax return and will be paying tax on the salary.
anuj dhingra
(Accounts Executive)
(152 Points)
Replied 28 December 2009
Fatima Is right................
Advani Tahil Jhamatmal
(Chartered Accountants)
(24 Points)
Replied 28 December 2009
Fatima is coorect - no TDS on partners remuneration as the same is only the appropriation of the profit
FATEMA
(CHARTERED ACCOUNTANT)
(719 Points)
Replied 28 December 2009
Dear all,
Please spell my name correctly...it is fatema and not fatima
Shriti Daga
(Chartered Accountant)
(102 Points)
Replied 28 December 2009
Vibhore Bansal
(PE II Articled Assistant)
(22 Points)
Replied 28 December 2009
Agreed with Fatema, No Tax deduction is required as there is no employer - employee relationship and also it is appropriation of profits.
manish
(Article Assitant)
(358 Points)
Replied 28 December 2009
Partner getting the distribution of profit from business & Profession income. so tds not have to deducted on salary. and if a partner getting salary & interest from firm who aggregate income is above 40Lac then it's necessary to conduct an tax audit.
FATEMA
(CHARTERED ACCOUNTANT)
(719 Points)
Replied 28 December 2009
Dear Manish,
Salary given to partners in excess of what they are entitled to get according to the slab rates given in the Income Tax Act is disallowed while computing the tax liability of the firm.
So no TDS should be deduted on salaries to partners
PRAVEEN KUMAR
(MBA (Finance) B.Com.(P))
(3443 Points)
Replied 28 December 2009
Well Explained by Ms. fatema.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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