Inclusion of Section 194T in Forms 26Q & 27Q

Inclusion of Section 194T in Forms 26Q & 27Q

G.S.R. 195(E).— In exercise of the powers conferred by section 295 read with section 194T of the Income tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1. (1) These rules may be called the Income-tax (Seventh Amendment) Rules, 2025.
   (2) They shall come into force on the date of their publication in Official Gazette.
   
2. In the Income-tax Rules, 1962, in Appendix II,––
   
   (A) in Form No. 26Q, ––
   
   (i) in the heading, after the figures and letter “194S”, the figures and letter “194T” shall be inserted;
   (ii) in the Annexure, in the Note no. 16, in the Table at the end, the following shall be inserted, namely :–
   
   “194T: Payment of salary, remuneration, commission, bonus or interest to a partner of firm 94T”;
   
   (B) in Form No. 27Q,––
   
   (i) in the heading, after the figures and letter “194N”, the figures and letter “194T” shall be inserted;
   
   (ii) in the Annexure, in the Note no. 13, in the table, for the row,–
   “195 Other sums payable to a non-resident 195”, the following rows shall be substituted, namely :–
   
   “194T: Payment of salary, remuneration, commission, bonus or interest to a partner of firm 94T
   
   195: Other sums payable to a non-resident 195”
   

Note : The principal rules were published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (ii), vide notification number S.O. 969 (E), dated the 27th March, 1962 and were last amended vide notification number G.S.R 193 (E), dated the 25th March, 2025.

Summary

The Income-tax (Seventh Amendment) Rules, 2025 introduces changes to the Income-tax Rules, 1962, incorporating provisions related to Section 194T of the Income-tax Act, 1961.

Key Amendments:

1. Effective Date: The rules take effect from their publication in the Official Gazette.
2. Changes to Form 26Q:
   • Addition of Section 194T in the heading.
   • Update in Annexure (Note 16, Table): Section 194T is added to cover payments of salary, remuneration, commission, bonus, or interest to a partner of a firm.
3. Changes to Form 27Q:
   • Addition of Section 194T in the heading.
   • Update in Annexure (Note 13, Table):
     • Section 194T is inserted for payments to a firm’s partner.
     • The existing entry for Section 195 (payments to non-residents) is retained.

These amendments formally incorporate Section 194T into tax reporting forms, ensuring compliance with new tax deduction requirements for payments made to partners of firms.

Notification

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