CA Rohan Bajaj (CA) (142 Points)
06 October 2020A Pvt. ltd. company is converted into LLP in Oct 2017 adhering to conditions laid down in section 47 of IT Act.
Is interest on partner's capital allowed in 2019-20 so that there is no contravention to the above section?
Please help experts.
The LLP deed allows for the interest on partner's capital @ 12% per annum.
Santosh Hegde
(133 Points)
Replied 06 October 2020
CA Rohan Bajaj
(CA)
(142 Points)
Replied 06 October 2020
| Originally posted by : Santosh Hegde | ||
 |
It'allowed to the extent of 12%(For LLP ).In the hands of partners it will be taxable. |  |
But it will contravene the provisions of section 47(iii) of IT Act? Right?
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