Interest on drawing
This query is : Resolved
Chetan Shah
(Querist)
01 February 2014
helo..everyone!!!
i just had a doubt whether interest on drawing paid by the partner to its firm is eligible as deduction to him for his computation of income??? an whether it will be taxable in firm's hand???
Dintakurthi Tirumala
(Expert)
01 February 2014
Yes interest paid on drawing by partner is allowable as expenditure for the partner and income for the firm.
The computation of net interest from the Firm for a partner taxable in his hand is
Interest received from the firm on their capital or additions less Interest paid(charged by the firm) to the firm on the drawings of the partner.
OM SAI SRI SAI JAI JAI SAI
The computation of net interest from the Firm for a partner taxable in his hand is
Interest received from the firm on their capital or additions less Interest paid(charged by the firm) to the firm on the drawings of the partner.
OM SAI SRI SAI JAI JAI SAI
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