pARTNER GET 12% INTEREST ON CAPITAL. HE HAS ALSO GIVEN LOAN TO FIRM. WHETHER INTEREST ON LOAN IS ALLOWED AS DEDUCTION? IS IT NECESSARY TO HAVE THAT CLAUSE IN P'SHIP DEED? IS IT WHITHIN LIMIT OF 12% OR ALLOWED IN ADDITION TO INTEREST ON CAPITAL?
pARTNER GET 12% INTEREST ON CAPITAL. HE HAS ALSO GIVEN LOAN TO FIRM. WHETHER INTEREST ON LOAN IS ALLOWED AS DEDUCTION? IS IT NECESSARY TO HAVE THAT CLAUSE IN P'SHIP DEED? IS IT WHITHIN LIMIT OF 12% OR ALLOWED IN ADDITION TO INTEREST ON CAPITAL?
All interest paid to partners will be allowed only if the partnership deed authorises the same - deed should specifically say all amounts standing to credit ro partner or Capital current account and loan account...
AND
upto 12% pa simple interest
CAclubindia
