Sir, is there any limit of interest on capital payable to partners, where Int. is paid as per p.deed. Pl. Clarify.
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Interest to partners
Replies (6)
Yes, The payment of interest to a partner should not exceed the amount calculated at the rate of 12% per annum simple interest ( Any amount in excess will be disallowed.)
Thank you sir., But Int. Is around 5 lakhs @ 12%. Is it fully allowable? Pl clarify
Yes, if it is within the limit of 12% then it will be fully allowed without any monetary limit.
Thank you sir., But Int. Is around 5 lakhs @ 12%. Is it fully allowable? Pl clarify
Yes, It is fully allowable if profit of firm are sufficient to adjust such income.
Thank you v.much sir.
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