TDS on remuneration to Non-resident Partners

 
Greetings to our clients.
   

1. Tax is required to be deducted from remuneration and interest payable by a firm to non-resident.

 

1. Sec. 195 of the Income Tax Act, applies to all payments which constitute income taxable in the hands of the recipient.

 

1. No tax to be deducted from share of profit payable to such partners, as such income is not chargeable to tax by virtue of Sec. 10(2A).

 

1. The rate at which the tax ought to be deducted is as follows:

 

If the recipient is non-resident individual
₹50 lakh or less	More than ₹50 lakh but not more than ₹1 crore	More than ₹1 crore
TDS (inclusive of SC-Nil, EC-2%,SHEC-1%)	TDS (inclusive of SC-10%, EC-2%,SHEC-1%)	TDS (inclusive of SC-15%, EC-2%,SHEC-1%)
30.9	33.99	35.535

 
The author is an associate member of the Institute of Chartered Accountants of India and a practicing Chartered Accountant based in Papanasam and can be reached at vijaysarathisha@gmail.com.
 

• : The contents of this document are solely for informational purpose. It does not constitute any professional advice or a formal recommendation. The author does not accept any liabilities for any loss or damage of any kind arising out of any inaccurate or incomplete information in this document or for any actions taken in reliance thereon. No part of this document should be distributed or copied without express written permission of the author.

 

TDS on remuneration to Non-resident Partners

 
Greetings to our clients.
   

1. Tax is required to be deducted from remuneration and interest payable by a firm to non-resident.

 

1. Sec. 195 of the Income Tax Act, applies to all payments which constitute income taxable in the hands of the recipient.

 

1. No tax to be deducted from share of profit payable to such partners, as such income is not chargeable to tax by virtue of Sec. 10(2A).

 

1. The rate at which the tax ought to be deducted is as follows:

 

If the recipient is non-resident individual
₹50 lakh or less	More than ₹50 lakh but not more than ₹1 crore	More than ₹1 crore
TDS (inclusive of SC-Nil, EC-2%,SHEC-1%)	TDS (inclusive of SC-10%, EC-2%,SHEC-1%)	TDS (inclusive of SC-15%, EC-2%,SHEC-1%)
30.9	33.99	35.535

 
The author is an associate member of the Institute of Chartered Accountants of India and a practicing Chartered Accountant based in Papanasam and can be reached at vijaysarathisha@gmail.com.
 

• : The contents of this document are solely for informational purpose. It does not constitute any professional advice or a formal recommendation. The author does not accept any liabilities for any loss or damage of any kind arising out of any inaccurate or incomplete information in this document or for any actions taken in reliance thereon. No part of this document should be distributed or copied without express written permission of the author.