30 September 2009
hello sis/mam, here i just came up with one doubt with regard to interest on capital...if the interest on capital from firm is 18%, then while calculating the total income,we have to add that entire 18% interest as IFOS..and excess interest ove 12%,whether it is admisssible exp. or not????or elso how to treat such transaction
30 September 2009
Interest @18% will not be allowed as deduction to the firm.,. u hav 2 add back 6% interest to arrive at book profit.,., this disallowed interest @6% wil be exempted in the hands of partner n interest allowed @12% wil be taxable in the hands of partner.
CAclubindia
