Introduction of Section 194T: Aimed at ensuring accurate TDS reporting on payments made to partners of firms.
Revisions to Forms 26Q and 27Q: Both forms have been updated to incorporate reporting requirements under the new Section 194T.
Effective Immediately: These changes apply from the date of publication in the Official Gazette.
Detailed Partner Payment Disclosure: Firms are now required to report payments such as salary, remuneration, commission, bonus, and interest to partners separately in the relevant TDS forms
Section 194T mandates partnership firms to deduct and report TDS on certain payments made to their partners. These payments include:
Salary
Remuneration
Commission
Bonus
Interest
This provision ensures that these payments are individually recorded in the TDS returns, helping to avoid misreporting and improving compliance.
The CBDT has revised Forms 26Q and 27Q to integrate Section 194T, ensuring proper reporting of payments made to partners.
Form 26Q
Purpose: Used to report TDS on non-salary payments made to resident individuals and entities.
Changes:
The heading now includes Section 194T.
A new row has been added in Annexure (Note 16) for payments under Section 194T.
Form 27Q
Purpose: Used to report TDS on non-salary payments made to non-resident individuals and entities.
Changes:
Section 194T has been added after Section 194N in the heading.
Note 13 has been updated with a new row to record payments made to partners under Section 194T.
Updated Table for TDS Forms 26Q & 27Q
Form | Section Added | Payment Type |
|---|---|---|
Form 26Q | 194T | Salary, remuneration, commission, bonus, or interest paid to a partner of a firm |
Form 27Q | 194T | Salary, remuneration, commission, bonus, or interest paid to a partner of a firm |
Form 27Q | 195 | Other sums payable to a non-resident |
Taxpayers must adhere to the new reporting requirements under Section 194T.
Partnership firms are required to separately report payments to partners, such as salary, commission, bonus, and interest, in Forms 26Q and 27Q.
Ensure that accounting systems and software are updated to include Section 194T in TDS reporting.
Accurately report all payments to partners to avoid penalties or scrutiny.
With the introduction of Section 194T, businesses must update their TDS reporting and filing processes to stay compliant. Ensuring timely deductions and accurate filings can be complicated, but IndiaFilings makes it easier. Our experts offer comprehensive support with TDS payments, filings, and compliance, helping businesses navigate tax regulations smoothly. Contact us today to simplify your TDS compliance and avoid penalties
Manisha
Manisha is an expert content writer specializing in business registration, tax regulations, trademark laws, and company compliance. With his deep understanding of complex legal and regulatory matters, Dinesh provides clear, actionable insights that help businesses navigate challenges and stay compliant with ease
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