Interest on drawings-tax effect
This query is : Resolved
13 April 2016
Can I know whether interest on drawings of partners is taxable in the hands of firm?If yes,then shall it be taken into a/c for calculating book profits u/s 40 (b)?
13 April 2016
Yes, if firm is taking from anyone that will be a part of firm income so take as a income.
13 April 2016
If the firm pays interest to a partner and the partner pays interest to the firm on his drawings,
then the interest shall not be netted off. The interest received by the firm from the partners on
their drawings is taxable in the hands of the firm as income under head Profits & Gains of
Business or Profession. The interest paid by the firm to the partners is allowable as per Section
40(b)
then the interest shall not be netted off. The interest received by the firm from the partners on
their drawings is taxable in the hands of the firm as income under head Profits & Gains of
Business or Profession. The interest paid by the firm to the partners is allowable as per Section
40(b)
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Confusion around Form 26QB fields
- RCM INVOICING FROM NOV-2024
- Tds on building rent monthly
- Should I be worried about and rectify reporting Jan,Feb ,March 2024 foreign salary in schedule FA?
- BUYING PROPERTY COULD NOT FILE 26QB
- Gst input for FY 23-24
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
