INTEREST ON CAPITAL RECEIVED FROM PARTNERSHIP FIRM

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sunil c (Querist)
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30 July 2022 1. UNDER WHICH HEAD OF INCOME IS THE INTEREST ON CAPITAL RECEIVED FROM PARTNERSHIP FIRM TAXABLE?
- "INCOME FROM BUSINESS/PROFESSION" OR "INCOME FROM OTHER SOURCES"

2. IF THE INTEREST RECEIVED FROM FIRM IS TO BE TAXED UNDER "INCOME FROM BUSINESS/PROFESSION, THEN WILL TAX AUDIT BE APPLICABLE IF THE TOTAL PROFESSIONAL RECEIPTS AND THE INTEREST ON CAPITAL EXCEEDS RS. 50.00 LAKHS?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 July 2022 1. Under profits & Gains from Business or Profession.
2. No the interest income is not eligible for sec. 44AD/44ADA of IT act..

sunil c

sunil c (Querist)
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31 July 2022 so then where do we show such interest income in ITR-3, because we are not maintaining books of accounts as professional receipts are eligible for 44ada...

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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31 July 2022 No need of keeping books of accounts, declare the interest under normal assessment.
& In schedule BP declare it as interest received from firm.

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