Some information required on Partnership Firms.

1. Can a partnership firm take loan from others(i.e. friends & relatives fo partners)

Ans - Yes

2 If yes what is the maximum percentage of interest that can be paid to them

The firm can pay interest upto a reasonable rate and not at excessive rates.

Generally a rate on which other parties are paid or a rate of say 12 % p.a. can be considered as reasonable.

3 If in the partnership deed the business mentioned is "Renting of movable & immovable property", under which head would rent from flats, shops be taken Income from House property or Business & profession.

If the property belongs to the assessee ,  income from letting out must be taken under the head income from house property. But as the deed itself declares as a business of the firm , you can take income under the head business & profession.

4 What is the rate of tax on capital gains for partnership firm

20% on Long Term Capital Gains

30% on Short Term Capital Gains

But in the next year the b/fd business loss can be set off against any business income only.

To, Paras Sir,

3. As you mentioned above, in point no. 3 that rent from flats, shops be taken in Business Income in this case, will the flats & shops be eligible for depreciation, if yes under which category as per Income Tax ( I think closed must be " Dep on Buildings")

Pls Solve my doubts in this regard.

One more thing to ask  

6. Can a partnership firm be partner in another firm, If yes can it receive remuneration as other Individual partners as per Income Tax.

Kind Regards,

Rehman