I have a doubt regarding the disclosure of income in the profit and loss account of a private limited company. The company was a partner in a partnership firm during the financial year 2020-21. During this period , partnership have paid interest on capital amounting to Rs. 120000 to the company (full amount was paid as it was not liable for TDS). How this amount should be disclosed in the profit and loss account of the company. Whether shown as interest on capital received or Dividend received under indirect income?. Whether any legal or tax implication in both the cases?.
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