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Q1: What is Section 194T and when does it come into effect? Section 194T is a new provision introduced by the Finance (No. 2) Act, 2024, effective from April 1, 2025. It mandates Tax Deduction at Source (TDS) on certain payments made by firms to their partners. This provision aims to bring partner payments under the TDS framework to ensure better tax compliance and tracking of income.
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