Central Board of Direct Taxes (CBDT) has issued the Income-tax (Seventh Amendment) Rules, 2025, under Section 295 and Section 194T of the Income-tax Act, 1961. Effective from the date of publication in the Official Gazette, this amendment updates the Income-tax Rules, 1962, specifically Forms 26Q and 27Q. In Form 26Q, Section 194T has been added to the heading, and a new entry in Note 16 clarifies that it applies to payments such as salary, remuneration, commission, bonus, or interest to firm partners. Similarly, in Form 27Q, Section 194T has been added, and modifications have been made in Note 13 to reflect payments to firm partners alongside existing provisions for non-resident payees under Section 195. This amendment ensures better clarity on tax deductions for payments to firm partners.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 22/2025-Income Tax |Dated: 27th March, 2025
G.S.R. 195(E).— In exercise of the powers conferred by section 295 read with section 194T of the Income- tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-
1. (1) These rules may be called the Income-tax (Seventh Amendment) Rules,
2. (2) They shall come into force on the date of their publication in Official Gazette.
2. In the Income-tax Rules, 1962, in Appendix II,––
(A) in Form 26Q, ––
(i) in the heading, after the figures and letter “194S”, the figures and letter “194T” shall be inserted;
(ii) in the Annexure, in the Note 16, in the Table at the end, the following shall be inserted, namely :–
| “194T | Payment of salary, remuneration, commission, bonus or interest to a partner of firm | 94T”; |
(B) in Form 27Q,––
(i) in the heading, after the figures and letter “194N”, the figures and letter “194T” shall be inserted;
(ii) in the Annexure, in the Note 13, in the table, for the row,–
| “195 | Other sums payable to a non-resident | 195”, |
the following rows shall be substituted, namely :–
| “194T | Payment of salary, remuneration, commission, bonus or interest to a partner of firm | 94T |
| 195 | Other sums payable to a non-resident | 195” |
[No. 22/2025/F. No. 370142/08/2025-TPL]
ASHISH KUMAR AGRAWAL, Dy. Secy.
Note : The principal rules were published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (ii), vide notification number S.O. 969 (E), dated the 27th March, 1962 and were last amended vide notification number G.S.R 193 (E), dated the 25th March, 2025.
