Interset Income received in Firm deductible u/s 40b
This query is : Resolved
kalpana sharma
(Querist)
16 December 2010
A firm has received FDR interest income.whether Interest paid to partner u/s 40b can set-off with the above interst recd.
CA Ayush Agarwal
(Expert)
16 December 2010
Dear Kalpana,
Please Don't Confuse Urself.
Interest Paid to Partners by a Partnership Firm is Allowable @12% Even if No FDR Interest Received.
Interest Allowed Under Separate Section 40b of Business Profession.
But Look at The Rate Not More Than 12% is Allowable Even if Provided in Deed.
Regards,
Ayush Agrawal
Please Don't Confuse Urself.
Interest Paid to Partners by a Partnership Firm is Allowable @12% Even if No FDR Interest Received.
Interest Allowed Under Separate Section 40b of Business Profession.
But Look at The Rate Not More Than 12% is Allowable Even if Provided in Deed.
Regards,
Ayush Agrawal
kalpana sharma
(Querist)
16 December 2010
Thanks For ur reply. An Expert adviced me that there is a recent judgement on the same issue. Which is- FDR interest should be taken in Income from other sources & in such case Interest given to Partner should not be from the above..
So,I want to clarify on the issue..
So,I want to clarify on the issue..
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