Partnership firm
This query is : Resolved
20 September 2012
Dear Sir,
A partnership firm whose net profit @8% u/s 44ad is Rs. 175000/-.
Whether the said firm can give interest @12% on capital of Rs. 100000/- employed by partners or it would not be allowed u/s 44AD ?
Please advise me.
A partnership firm whose net profit @8% u/s 44ad is Rs. 175000/-.
Whether the said firm can give interest @12% on capital of Rs. 100000/- employed by partners or it would not be allowed u/s 44AD ?
Please advise me.
20 September 2012
Deduction of partner's remuneration and interest on capital is allowed separately from the income declared u/s 44AD.
Accordingly, interest on partner's capital can be paid.
Accordingly, interest on partner's capital can be paid.
20 September 2012
Suppose Capital is Rs. 2 lacs, which was employed by partner in cash. Still the firm is entiled to give interest on said capital or not.
20 September 2012
Yes, firm is entitled to give interest on such capital.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
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