01 January 2022
Dear Sir / Madam Assessee is Partner in Partnership firm and having Income Partnership firm and other Interest Income. During the FY 2020-21 Assessee had Debit Capital Balance in Firm so assessee has Interest exp which is more than salary received to firm and salary and profit from partnership firm. Due to this Assessee has Business Loss which is set off against other income in computation. But while filing the Return error comes " Tax payer has loss from business and no P&L and BS not filed in Part A and has not got books of account audited. But Assessee has no business other than Share of Income from Partnership Firm only.
01 January 2022
1. Is there clause in partnership deed to charge interest over debit balance of partner/s? 2. Whether the interest income is declared by firm in its ITR? 3. Interest charged by firm in such manner is not deductible as expense in partner's ITR.
03 January 2022
Dear Sir Thank you and Answer of your Question is as under. 1. Yes, There is clause for charge of Interest over Debit Balance. 2. Yes, Firm has declared the interest income in its ITR. 3.
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