Your Firm Must Now Cut TDS on Partners' Own Pay: 194T

Section 194T makes firms and LLPs deduct 10% TDS on partner salary, remuneration, commission, bonus and interest from 1 April 2025.

The ₹20,000 limit is checked on the total of all such payments to a partner in a year, not per payment.

Your profit share and capital withdrawals stay TDS-free — only working/interest payments are hit.

Every firm paying partners now needs a TAN, must file Form 26Q quarterly and issue Form 16A.

TDS is triggered the moment the amount is credited to a partner's account, even the capital account.