14 September 2014
Usually interest waived off when firm in loss. If the partner mutually agreed among them and deed authorized to do so.
If you charges interest in the firm same taxed in the individual hands . Firm business loss increases to that extent.
I my opinion: If firm have the capacity to earn the profit in future days (i.e., with in 6 years as already 2 years loss suffered) make the interest provision there by business will surfer loss and when firm make the profit you can set of the earlier loss with it.
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