banner_ad

Interest on Capital

This query is : Resolved 
Profile Image

Profile Image

(Querist)
27 November 2008 Dear Members

1. My senior told interest on capital calculated at cumulative balance?

2. Interest on Capital calculated at capital account include current account of partner's it's correct or wrong
Profile Image

Bhaskaran Chackrapani Warrier

Profile Image

Bhaskaran Chackrapani Warrier (Expert)
27 November 2008 Section 40(b) of the income tax act,1961 does not specify the method of calculation of interest. Thus a rational method can be adopted. In order to avoid disputes it is better to mention the method of calculation in the partnership deed. If the partnership deed contains a provision to provide interest on current account it will be allowed otherwise not.
Profile Image

Tarun Gupta

Profile Image

Tarun Gupta (Expert)
27 November 2008 I agree with Mr. warrier.
Profile Image

UMASHANKAR M S

Profile Image

UMASHANKAR M S (Querist)
27 November 2008 Thank u Mr.CA.B.Chackrapani
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
26 April 2026
Chartered Accountant

Source HR

Mumbai

CA

View Details
Company
08 May 2026
Paid Assistants

Quick Taxperts Private Limited

Bengaluru

Graduate (Any)

View Details
Company
14 May 2026
ICSI Trainees for 21 Months and Semi-Qualified CS

CMNITY HIRE

New Delhi

Others

View Details
Company
11 May 2026
Post office

Post office

Anakapalle

Others

View Details
Company
07 May 2026
CA Assistant

amit desai and co

Mumbai

CA Final

View Details
Company
05 May 2026
Accountant

Sanjay K Pathak & Associates

Noida

Graduate (Any)

View Details
Company
23 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
29 April 2026
Associate - Audit, Tax & Compliance

Open Co Consulting LLP

New Delhi

B.Com

View Details