can we take deduction of interest paid on unsecured loan/secured loan taken in personal capital a/c of individual. as loan invested in partnership firm as capital .
can we deduct it from remuneration and interest recieved from firm on capital or not.or what should be treatment of interest on loan.
Query is not very clear, however I assume that you are asking that if loan is taken in personal account by a person being a partner in a firm, the loan used for the business of the firm, can this be treated as capital of the individual in a firm. With this understanding my reply is that the firm is a separate legal entity from the partner. Unless the capital in specifically brought in to the books as capital of the partners it can not be treated as capital, However it can be treated as loan in the hands of the firm and payment of interest can be made to the partner. That interest will not be treatred for the purposes of calculating the remuneraion etc. of the parters. The income from interest on such loans to a partner would be treated as an interest income.
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