Suyog Dhoot
2.3K posts







Many small partnership firms who never had TAN or deducted TDS are now applying TAN (As They never had transaction where TDS was required) as they have to deduct TDS on Partners remuneration. They will also file TDS return and generate TDS certificate! 20K is a very small limit. Section 194T is adding unnecessary compliance, complication and Cash flow Crunch.





S.194T-(TDS on remuneration/int to partners) may create needless cash flow stress for many MSME partnership firms from Financial Year 2025–26. Example: Two partners receive 10 lakh each as remuneration / interest from firm.Firm deducts 2 lakh as TDS u/s 194T, but partners may still end up claiming full refund as final tax liability may be nil (No tax on normal income upto 12 Lacs) Money blocked first, refunded later. No lower/nil deduction facility u/s 197/197A appears available for S.194T @IncomeTaxIndia may kindly consider a giving lower/no deduction facility for S.194T








