Sir, is there any limit of interest on capital payable to partners, where Int. is paid as per p.deed. Pl. Clarify.
6 Replies
CA MANISH BINDAL
(CHARTERED ACCOUNTANT )
(535 Points)
Replied 10 August 2016
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.)
B.P. SRIDHAR
(ADVOCATE AND TAX LAWS CONSULTANT)
(80 Points)
Replied 10 August 2016
Thank you sir., But Int. Is around 5 lakhs @ 12%. Is it fully allowable? Pl clarify
CA MANISH BINDAL
(CHARTERED ACCOUNTANT )
(535 Points)
Replied 10 August 2016
Yes, if it is within the limit of 12% then it will be fully allowed without any monetary limit.
B.P. SRIDHAR
(ADVOCATE AND TAX LAWS CONSULTANT)
(80 Points)
Replied 10 August 2016
Thank you sir., But Int. Is around 5 lakhs @ 12%. Is it fully allowable? Pl clarify
CA MANISH BINDAL
(CHARTERED ACCOUNTANT )
(535 Points)
Replied 10 August 2016
Yes, It is fully allowable if profit of firm are sufficient to adjust such income.
B.P. SRIDHAR
(ADVOCATE AND TAX LAWS CONSULTANT)
(80 Points)
Replied 10 August 2016
Thank you v.much sir.
Recent Topics
- Share office desk in bkc, near family court
- 80D claim for payment paid by parent
- TDS on purchase of Flat under subvention scheme be
- Nznxnc call me at the end of the day of the
- Nsje snswk fjw ed le ene djff ne enje ejdd rejje
- Hxjcif the day I have been in touch with me and
- Iska djd djrbdsjebshe sir ur rei ejr reinr the jr
- GST registration for medical shop in Karnataka
- Hsshs me know if you are free number of the
- Chu Kang and the situation of the situation and I
Related Threads
CAclubindia
