Tax / TDS tool
Section 194T TDS checker
Check whether payments by a partnership firm or LLP to a partner fall within the configured Section 194T rule for FY 2025-26.
Step 1 of 4
Section 194T checker
Visible formula
If the payer, payee, payment nature, and threshold conditions are met: aggregate covered FY payment × 10% configured rate = indicative TDS. The thresholdApplication caveat remains unresolved and is shown in the verdict.
Printable IF / THEN decision path
- IF the payer is a partnership firm or LLP, THEN continue; otherwise Section 194T is not applicable to this payer.
- IF the payee is a partner, THEN continue; otherwise Section 194T does not apply.
- IF the payment is one of the configured covered natures (remuneration, salary, bonus, commission, interest), THEN continue. IF it is one of the configured excluded natures (share of profit (exempt u/s 10(2A) logic), capital withdrawal), THEN exclude it.
- IF aggregate FY covered payments are at least the configured annual threshold, THEN show APPLIES at the configured rate and verify the full-versus-excess treatment; otherwise show NOT APPLICABLE for being below threshold.
Frequently asked questions
What does Section 194T cover?
1. Section 194T covers remuneration, salary, bonus, commission, and interest paid or credited by a partnership firm or LLP to its partner. Share of profit and capital withdrawal are excluded by this configured rule set.
What is the Section 194T annual threshold?
1. The configured annual threshold is ₹20,000 for the aggregate FY payments checked by this tool. The full-amount-versus-excess treatment remains a CA verification item.
When did Section 194T become effective?
1. The configured effective date is 01-04-2025. Payments or credits on or after that date should be reviewed against the Section 194T conditions and the applicable compliance cycle.
How does Section 194T interact with Section 40(b) deduction limits?
1. Section 194T withholding and Section 40(b) deduction eligibility are separate questions. A payment may require TDS review even when the firm must separately test its deduction ceiling. The 40(b) to 35 & 66 mapping is marked on the ITA index.
View the 40(b) → 35 & 66 mapping →How is Section 194T different from Sections 194J and 192?
1. Section 194T is for configured partner payments by a partnership firm or LLP. Section 194J concerns specified professional or technical payments, while Section 192 concerns salary TDS. A company director salary is therefore not a Section 194T case in this checker.
What are the first-year Section 194T compliance steps?
1. Confirm payer and partner status, classify each payment nature, track the aggregate FY amount, deduct at the configured rate when the threshold condition is met, deposit the challan in the applicable cycle, and report resident non-salary payments in Form 26Q.