Is TDS to be deducted on Salary to Partner?

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  1. ASHISH KUMAR JAIN

    ASHISH KUMAR JAIN New Member

    IS IT COMPULSORY TO DEDUCT TDS BY PARTNER SHIP FIRM ON INTREST AND REMUNERATION PAID TO PARTNER ?
     
  2. @ Ashish,
    According to Income Tax Act, any employee having taxable income under the head “Salary” shall be treated as payee for TDS u/s 192. For application of S. 192, there must exist employer employee relationship between payer and payee.
    In your case no employer-employee relation exist and the remuneration received by partner is not considered as 'salary'.
    Thus no TDS is liable on remuneration. It is taxable as business income u/s 28(v).
    Hence no tds on remuneration to partner but there is a limit u/s 40(b). T.D.S will not be deducted even if the payment exceeds the limit under sec. 40(b)
     
  3. ASHISH KUMAR JAIN

    ASHISH KUMAR JAIN New Member

    THANKS FOR ANSWER
    PLEASE TELL ME ABOUT INTEREST TO PARTNER ALSO
     
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