Budget 2025 TDS For Partnership Firm

25-02-2025

The Union Budget 2025 has introduced specific changes to the Tax Deducted at Source (TDS) provisions affecting partnership firms.

Key Changes:

1. Introduction of TDS on Payments to Partners:
   • Effective from April 1, 2025, partnership firms are required to deduct TDS on certain payments made to their partners. This measure aims to ensure proper tax compliance and reporting of income received by partners from the firm.
2. Surcharge on Income Tax for Firms:
   • For partnership firms with a total income exceeding INR 1 crore, the income tax computed will be subject to a surcharge of 12%. This surcharge is applicable to the amount of income tax calculated on the firm’s total income.