Partner’s Remuneration Section 194T Payment TDS Calculator for FY 2024-25 AY 2025-26

Partner’s Remuneration 194T Payment TDS Calculator for the FY 2024-25 AY 2025-26 in Excel Format

Section 40(b) – From AY 2025-26, partnership firms see an increase in the limit for allowability of working partners’ remuneration. Now, on the first Rs 6 lakh of book profits, or in case of loss, a remuneration of Rs. 3 lakh or 90% of book profits (whichever is more) is permitted. Remember, an amendment in the partnership deed is necessary to reflect this change.

New TDS Section 194T Insertion – If remuneration, bonus, interest, commission, or salary (excluding profits) paid to a partner by a partnership firm exceeds Rs 20,000 in a financial year, the firm is now obligated to deduct TDS at a rate of 10%.