Assessment of firm

1. As per section 40(b) only that salary, remuneration, bonus, commission etc payable to working partners or any payment of interest payable to any partner will be allowed as deduction only if it is authorized by the partnership deed. If the partnership deed does not contain such provisions then the deductions may be disallowed if the same is claimed by the partnership firm.

2. Same not allowed when firm assessed under presumptive scheme.

No. That is for partner's capital investment.

Partners are entitled to receive interest at an agreed rate of interest on any Loan given by them to the firm. Interest on Loan is a charge against profits so a partner is entitled to receive interest wheather there are profits or not. If there is no agreement regarding the rate of interest, it is taken as 6% p.a.

The provision is as per Partnership act.

As per income tax act, u/s. 40(b) it is restricted to 12% only.