PARTNERSHIP DEED ALLOWS INTEREST ON CAPITAL @ 12% BUT WHAT IF INTEREST PAID IN ACTUAL FOR THE YEAR IS LESS THAN THE ALLOWED RATE; IS IT ADMISSIBLE?
SHOULD I FILL THE RATE OF INTEREST ON CAPITAL WHAT IS PÀID OR WHAT IS IN THE DEED IN FORM NO.5?
3 Replies
M.M Sachora
(Tax Professional & Advisor)
(1421 Points)
Replied 29 October 2017
Partnership deed allow maximum Rate in which you can give interest to partner as per partnership Act and same is allow under income-tax act but if you give less than decided rate then you give detail only what you paid actually and it is allow in income-tax which up to maximum 12%
rama krishnan
(12239 Points)
Replied 29 October 2017
actual interest incurred will be allowed as expenses subject to a maximum of 12% pa but the same needs to be incorporated in deed
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 29 October 2017
Yes...
You can calculate Upto 12% also based on the Deed...
You can calculate Upto 12% also based on the Deed...
Recent Topics
- FORM 10 IEA IN Revised return
- ITC Eligibility on GTA
- Top Highest Tax-Paying Celebrities: FY 2023-24
- Misplace society Bye law
- Submit ommited invoice of previous year
- Need your valueble insight
- GSTR-9 Invoices
- Agricultural Business Loss
- Reporting in gstr9 of ITC of Previous year reverse
- Tax on Reimbursement of House Rent
Related Threads
CAclubindia
