Partner TDS sheet for CA firms: 10% on remuneration and interest to partners of firms and LLPs once the year crosses ₹20,000 (section 393(3), old 194T)
What you get: a finished partner TDS sheet in three tabs: a Partners tab that adds up each partner's remuneration, interest, commission, bonus and salary for the tax year and tells you whether the ₹20,000 line is crossed, a Credits tab that gives each entry its deduction month and deposit date, and a Not covered tab for items that stay outside, plus a made-up example and a client message.
Short answer (checked 27 Oct 2026): from 1 April 2026 the old section 194T of the Income-tax Act, 1961 sits in section 393(3), Table serial number 7, of the Income-tax Act, 2025. A firm (an LLP counts as a firm) must deduct 10% on any sum in the nature of salary, remuneration, commission, bonus or interest paid to a partner or credited to the partner's account, including the capital account. The threshold is ₹20,000 per partner for the year, counted on all five items together, and once it is crossed tax is deducted on the whole amount, not only the part above ₹20,000. Deduction is due at credit or payment, whichever is earlier.
Why firms miss it
Many partnership firms and LLPs only post partner remuneration and interest on capital on 31 March, as a book entry with no money moving. That book entry is the trigger. If the firm also pays monthly drawings against remuneration, the earlier of credit or payment decides the month. A short sheet kept from October gives you time to plan the year-end entries and the deposits before the March rush.
Tab "Partners": one row per partner
| Column | What to write | Source |
|---|---|---|
| A. Firm and partner ref | Your internal reference | |
| B. Firm or LLP | Both are covered | Definition of firm includes LLP |
| C. Remuneration | Credited or paid so far this tax year, plus what is planned for 31 March | s.393(3) Sl. 7 |
| D. Interest on capital or loan | Same | s.393(3) Sl. 7 |
| E. Commission | Same | s.393(3) Sl. 7 |
| F. Bonus | Same | s.393(3) Sl. 7 |
| G. Salary | Same | s.393(3) Sl. 7 |
| H. Total | =SUM(C2:G2) | |
| I. Over ₹20,000? | =IF(H2>20000,"Yes","No") | Threshold ₹20,000, aggregate |
| J. TDS on the year | =IF(I2="Yes",ROUND(H2*10%,0),0). On the whole total once the line is crossed | Rate 10% |
| K. TDS already deducted | From your TDS records | |
| L. Still to deduct | =MAX(0,J2-K2) | |
| M. Status | =IF(I2="No","Below line: keep watching",IF(L2=0,"Done","Deduct ₹"&L2&" at next credit or payment")) |
If the planned figures stay below ₹20,000 but a late credit pushes the total over, the earlier amounts count too. The "Still to deduct" column then shows the catch-up amount.
Tab "Credits": one row per entry
| Column | What to write |
|---|---|
| A. Partner ref | Same as the Partners tab |
| B. Type | Remuneration, Interest, Commission, Bonus or Salary |
| C. Amount | ₹ |
| D. Date credited in books | Capital, current or any other account of the partner |
| E. Date paid | Blank if not paid yet |
| F. Deduction date | =IF(E2="",D2,IF(D2="",E2,MIN(D2,E2))): the earlier of credit and payment |
| G. Deposit by | =IF(MONTH(F2)=3,DATE(YEAR(F2),4,30),DATE(YEAR(F2),MONTH(F2)+1,7)). This uses the long-standing pattern of the 7th of next month and 30 April for March. Check the current Income-tax Rules before you rely on it |
| H. Deposited on | Challan date |
| I. Status | =IF(H2<>"","Deposited",IF(G2<TODAY(),"Late: deposit now","Due "&TEXT(G2,"d mmm"))) |
Tab "Not covered": keep these out of the total
- Share of profit: not one of the five items.
- Drawings and withdrawal of capital: money the partner takes out of their own balance.
- Genuine reimbursement of expenses the partner spent for the firm, backed by bills.
A drawing paid "against remuneration" is different: it is an advance payment of remuneration, so it goes in the Credits tab.
Made-up example (not a real client)
Partner P1 of an LLP gets ₹1,500 a month interest on capital, credited monthly from April (₹18,000 for the year), and ₹1,00,000 remuneration credited on 31 March. By March the total is ₹1,18,000, well over ₹20,000, so TDS for the year is ₹11,800. Nothing was deducted on the monthly interest because the firm expected to stay under the line, so the sheet shows "Deduct ₹11,800 at next credit or payment" on 31 March, with deposit by 30 April. Partner P2 gets only ₹12,000 interest and no remuneration, so the sheet shows "Below line: keep watching".
WhatsApp message to a client
"From this year, TDS of 10% applies to partner remuneration, interest on capital, commission, bonus and salary once a partner's total for the year crosses ₹20,000, including entries made only in the books on 31 March. Please send us the remuneration and interest you plan to credit to each partner by [date], so we can work out the TDS and deposit dates."
Related guides
- TDS and TCS for October 2026: deposit by 7 November, challan and late interest sheet
- Form 26Q to Form 140: section and code mapping for 2026
- Advance tax 15 December: client reminder plan
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Sources
- Income Tax Department: Income-tax Act, 2025, section 393 (Table, serial number 7)
- Income Tax Department: payments covered under TDS and rates (section 194T, from 1 April 2025)
- Finance (No. 2) Act, 2024, section 62: text of section 194T
- CAclubindia: section 393(3) compared with section 194T
This sheet is a working aid, not professional advice. Rules, forms and due dates under the Income-tax Act, 2025 are new and can change; check the Income Tax Department before you rely on them. Checked on 27 October 2026. Spot an error? Write to mininglife7@gmail.com.
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