16 July 2012
Incase you have paid or received interest for same type of transactions with the other parties( not being partner) then Officer can charge notional interest
16 July 2012
Interest on partner's accounts are governed by the provisions of the partnership deed read along with section 40(b) of the Income tax Act,1961. Accordingly, if the deed contains a specfic provsion regarding levy of interest on debit balance , then the ITO'S contention will sustain otherwise not.
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