Go AD-Free with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

TDS on partners remuneration

Vijay Mohan (641 Points)

19 March 2025

TAN registration mandatory for partnership firm for deducting tds on partners remuneration.

From which AY it will be applicable

Reply
Follow
Share

3 Replies

Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (6878 Points)
Replied 19 March 2025

As per the Income-tax Act, 1961, a partnership firm is required to deduct Tax Deducted at Source (TDS) on partner's remuneration. To comply with this requirement, the partnership firm must obtain a Tax Deduction and Collection Account Number (TAN). Mandatory TAN Registration: The Finance Act, 2021, introduced a new provision, Section 194A(3A), which mandates TAN registration for partnership firms deducting TDS on partner's remuneration. Applicability: This provision is applicable from the Assessment Year (AY) 2022-23 onwards. Key Points: 1. *TAN Registration*: Partnership firms must obtain a TAN to deduct TDS on partner's remuneration. 2. *TDS Deduction*: TDS must be deducted on partner's remuneration as per the applicable rates. 3. *Quarterly TDS Statements*: Partnership firms must file quarterly TDS statements (Form 26Q) to report the TDS deducted. Next Steps: 1. *Apply for TAN*: If you haven't already, apply for a TAN through the NSDL website or a TAN facilitation center. 2. *Deduct TDS*: Ensure you deduct TDS on partner's remuneration as per the applicable rates. 3. *File TDS Statements*: File quarterly TDS statements (Form 26Q) to report the TDS deducted. Consult a tax professional or chartered accountant to ensure compliance with TDS regulations and TAN registration requirements.

Upgrade to CAclubindia Pro. Subscribe Now!

K L Narasimham (CHARTERED ACCOUNTANTS) (54 Points)
Replied 19 March 2025

Pl let me know if a Partner can submit Form 13 and request for issue of NIL TDS certificate.

Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (6878 Points)
Replied 19 March 2025

As per the Income-tax Act, 1961, a partner can submit Form 13 to request a Nil TDS certificate, but there are certain conditions and requirements. Eligibility: A partner can submit Form 13 if: 1. *No tax liability*: The partner does not have any tax liability for the financial year. 2. *No TDS deductible*: No TDS is deductible from the partner's share of income from the partnership firm. Conditions: Before submitting Form 13, the partner must: 1. *Verify the partnership deed*: Ensure the partnership deed allows the partner to request a Nil TDS certificate. 2. *Obtain a certificate from the firm*: Get a certificate from the partnership firm stating that the partner's share of income is not liable to TDS. Procedure: To submit Form 13: 1. *Fill the form*: Fill Form 13 with the required details, including the partner's PAN, name, and address. 2. *Attach supporting documents*: Attach the certificate from the partnership firm and any other supporting documents. 3. *Submit the form*: Submit Form 13 to the Assessing Officer (AO) or the designated authority. Issuance of Nil TDS Certificate: If the AO is satisfied with the application, they will issue a Nil TDS certificate in Form 16A or Form 16B, as applicable. Please consult a tax professional or chartered accountant to ensure compliance with tax regulations and to verify the specific requirements for your situation.

Join CCI Pro

Recent Topics

More recent discussions | Post

Related Threads

Popular Discussion

Start a New Discussion

CCI Pro

Trending Online Classes

Certification Course on Chat GPT and AI Tools for Professionals

CA Deepak Gupta

Enroll Now

21 March 2025
Financial Modeling - Fundamental Analysis and Valuation

CA Vishal Zawar

Enroll Now

22 March 2025
Guide to UAE Corporate Tax Return Filing

CA Mohd Asim

Enroll Now

05 April 2025

view all classess

Subscribe to the latest topics :

Search Forum:

Forum Home

Popular Threads

Recent Posts

Unreplied Threads

Settings