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losse of partnership firm

Nilesh Rathore (indore) (96 Points)

25 July 2018

can interest be allowed as expanses in case of firm is in losses..???

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2 Replies

Kavita Modi (CA Job) (232 Points)
Replied 25 July 2018

it all depends on partnership deed if it is mentioned in the deed that partners are entitled for interest on capital even in case of losses then interest can be allowed. however it should not be more than 12%.

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RAJA P M ("Do the Right Thing...!!!") (128096 Points)
Replied 25 July 2018

Yes... Interest and remuneration will be allowed as per Partnership deed if Form opt u/s 44AA...

Otherwise no way for claim Remuneration and Interest.