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TDS on partners remuneration is mandatory or not

AMIT KUMAR SINGH (22 Points)

15 June 2017

wheather tds on partners remuneration is deductible or not
yes or no pls clarify...

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3 Replies

CA Mayur Todmal (Practicing CA) (7756 Points)
Replied 15 June 2017

no tds on remunaration under 40(b)

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PRABIR PAUL (*****Accountant***** Never insult to any person for any kind of lack of knowledge or misread.) (1443 Points)
Replied 15 June 2017

TDS is not applicable on Partner's remuneration.......

Partner's remuneration is taxable under the head PGBP.........

It is not taxable under the head salary........

There is no provision of tds on partner's remuneration on PGBP..... As well as P. Tax shouldn't be deductable.....

If during the year for the purpose of section 40(b) any remuneration disallowed then the disallowed amount will taxable in the hands of the firm...

CA PRASHANT CHOUDHARY (CA) (161 Points)
Replied 15 June 2017

partners and the firm are not separate assessees and it cannot be said that partners act on behalf of the firm because they themselves constitute a partnership firm....
provisions of TDS are not applicable in respect of commission / remuneration / bonus / salary/ interest etc. paid to the partners of a firm as it is merely an allocation of profit to be assessed in the case of firm or its partners....