AOP & PARTNERSHIP

Mr.Ashrap

AOP is not entitled to claim interest paid on partners capital and remuneration paid to working partners under income-tax act.  A firm which is evidenced by an instrument of partnership deed and wherein the terms and conditions of payment of interest on partenrs capital and remuneration to working partners are reduced to writing among other terms and conditions, can claim the said two expenses as deduction from the income.  Hence partnership is advisable.

Best Wishes

Sathikonda