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TDS Section 194T Payment by partnership firm to partner

FY 2025-26 · Rate 10%

Section
194T
Rate (with PAN)
10%
Rate (no PAN)
20%

What does this section cover?

TDS on salary, remuneration, commission, bonus, interest paid by a partnership firm/LLP to any of its partners.

Why this section: New from Apr 2025 — partnership firms/LLPs must deduct 10% TDS on payments to partners above ₹20k per FY.

Note: Brand new section effective FY 2025-26. Covers salary, remuneration, commission, bonus, interest paid to partners.

Key facts

Threshold
₹20,000 per FY per partner
Applicable for
FY 2025-26
Who deducts
Partnership firm / LLP
Paid to
Partner
Statutory source
Section 194T, Income Tax Act (inserted by Finance (No. 2) Act 2024, effective 1 April 2025)
Compute and file this TDS with CAhelperFree TDS computation, Form 26Q prep, challan generation — Part of KLI.

Common terms accountants use

If your description mentions any of these, Section 194T is likely the right answer. The matcher in this tool is a keyword scorer — not an AI classifier — so cross-check borderline cases against the official CBDT TDS rate chart.

partner remunerationllp partnerfirm partner salarypartner interestpartner commission

Related TDS sections

Other sections in the same series or adjacent. Useful when narrowing down between similar payment categories.

Need a different section?

Describe the payment in plain English — “rent of plant”, “senior citizen interest”, “NRI dividend” — and the matcher will surface the right section.

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Source: curated from the CBDT TDS rate chart. Dataset snapshot: 2025-04-01. Rates can change between Finance Acts and notifications — verify before deducting.