if partner has negative capital. He has also given loan to firm which is less than its negative capital. can interest paid on loan to partner is eligible for deduction ?
Nitesh Painter (Service) (78 Points)
21 September 2011if partner has negative capital. He has also given loan to firm which is less than its negative capital. can interest paid on loan to partner is eligible for deduction ?
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 21 September 2011
Yes interest can be set off if one to one correlation could be set.