INTEREST EARNED FROM FIRM

This query is : Resolved

harshit darji (Querist)
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22 June 2020 MR.X earned business income rs 250000 and interest from firm rs 100000 as well as capital rs 15,00,000.
query is
1.whether i have to show interest from firm in PL credit side?
2.do i have to entry direct while computing the income.
3.can i enter 15 lacs as investment in BS?

Eswar Reddy S

Eswar Reddy S (Expert)
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22 June 2020 Interest from partnership first of 100000/- can be shown directly in IT computation under special business..

Eswar Reddy S

Eswar Reddy S (Expert)
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22 June 2020 Need not credit to PL of regular business

Eswar Reddy S

Eswar Reddy S (Expert)
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22 June 2020 Share of Profit Remuneration Interest These things comes under special business

c.bakshi

c.bakshi (Expert)
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23 June 2020 SHARE OF PROFIT IN PARTNERSHIP IS EXEMPTED UNDER 10(2). HOWEVER, IT IS RIGHTLY SAID IN ABOVE REPLIES THAT INTEREST INCOME NEED NOT TO TRANSFER INTO YOUR BUSINESS PROFIT & LOSS A/C AS THIS INCOME DOES NOT BELONG TO THAT BUSINESS (YOUR PROPRIETORSHIP CONCERN)

harshit darji

harshit darji (Querist)
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23 June 2020 OK THANKS I CLEARED ON THIS TOPIC.

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