Partners remunaration

Nitesh Painter (Service) (78 Points)

20 September 2011  

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?