19 August 2011
If in a partnership deed written about Interest on capital. Then the partnership firm achieve 80000 as profit. Then came a Interest on loan 40000. And calculated Interest on capital is 50000. Then how it will be treated?
19 August 2011
Sir, When first time ask for the question then i get answered that Interest on capital can be provided when profit are sufficient.Sir please tell me briefly.
19 August 2011
It applies on salary of partners. You can pay the salary if there are profits. There are a lot of provisions related to salary in section 40(b) of income tax.
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