Interset on borrowed by partner from outside person
This query is : Resolved
PRADEEP REDDY
(Querist)
13 September 2011
hello sir
whether interest on loan borrowed by a partner from a outsider for the purpose of partnership firm is allowed as deduction from the individual income of the partner or not??
in books of accounts it is added to the partner capital and interest is given @12%p.a but partner has borrowed the same from the outsider @36%p.a .now whether the balance of interest(24%) is allowed as deduction from his individual income??
whether interest on loan borrowed by a partner from a outsider for the purpose of partnership firm is allowed as deduction from the individual income of the partner or not??
in books of accounts it is added to the partner capital and interest is given @12%p.a but partner has borrowed the same from the outsider @36%p.a .now whether the balance of interest(24%) is allowed as deduction from his individual income??
Dintakurthi Tirumala
(Expert)
13 September 2011
Yes allowable from the individual income.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
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CA. Anuj Gupta
(Expert)
14 September 2011
Although legally the same is permissible but practically the ITO shall not allow unless you give genuine reasons for the same.
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