Budget 2024: 10% TDS on Firm to Partner Payments under New Section 194T

The Indian Budget 2024 introduces Section 194T, mandating TDS on payments from firms to partners. Under this new provision, firms will need to deduct tax at source on payments made to partners, aligning with increased transparency and compliance measures. This change aims to improve tax collection and address discrepancies in income reporting by ensuring that payments between firms and their partners are properly taxed. The bill emphasizes the need for accurate record-keeping and timely tax payments to prevent penalties and ensure adherence to the new tax rules.