Interest paid by partner
This query is : Resolved
24 April 2014
Dear All,
Can anyone help me with this
A Partner has negative Balance in Capital and he pays Interest on Capital to the firm. Such Interest received by firm is assessed to tax by the firm. Can this Interest expense be claimed as a deduction by the Partner against Remuneration received from the same firm or be claimed as exempt? Please specify the section also
Can anyone help me with this
A Partner has negative Balance in Capital and he pays Interest on Capital to the firm. Such Interest received by firm is assessed to tax by the firm. Can this Interest expense be claimed as a deduction by the Partner against Remuneration received from the same firm or be claimed as exempt? Please specify the section also
24 April 2014
given that interest on capital received is included in Income, it is but natural that interest paid is claimed as an expense against the remuneration received from the firm
24 April 2014
OK But can you give reference to any section which permits that
24 April 2014
the income from partnership is covered under income from business/profession under section 28. It is a natural corollary that any expense shall be netted off against it.
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