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Section 40a(2)(b) of income tax act

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(Querist)
16 February 2012 Hi..

Wanted to know what is the rate of interest allowed u/s 40A(2)(b) of IT act if interest is paid to the directors.

Also is it applicable for partnership firm or pvt ltd companies also

Please do revert

Regards,
Prashant Sawant
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CA. Hari Kishan

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CA. Hari Kishan (Expert)
16 February 2012 Practically the officers allow interest payments upto 15%.. however i recommend to provide for interest upto 12% which is average to the market rates..

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