Section 194T: The New TDS Every Partnership Now Has to Cut

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

The ₹20,000 threshold is per partner per year; cross it and TDS applies to the whole amount, not just the excess.

Profit share (exempt under 10(2A)) and capital withdrawals are outside 194T — only Section 40(b) payments are hit.

No Form 15G/15H and no Section 197 lower-deduction certificate are allowed, so 10% is fixed unless PAN is missing.

Your firm needs a TAN, must deposit TDS monthly and file Form 26Q quarterly, then issue Form 16A to each partner.