Can we take interested on capital mre than 12%?

The payment of interest to a partner should not exceed the amount calculated at the rate 12% p.a simple interest. Any amount in excess of 12% will be disallowed. The payment of interest can be to any partner whether working or non-working.
Interest paid by the firm to its partners on their fixed capital account, current capital account and loan account is allowable as deduction to the firm provided the partnership deed specifically authorizes the payment of interest on fixed capital account, current capital account and loan account. If the partnership deed authorizes the payment of interest on fixed capital account then interest on current capital account and loan account shall not be allowed as deduction to the firm.

then can i assume 8 % interest of capital if it does not mention in partnership deed.

Dear Experts,

 

please guide me to know if the interest on capital can be taken any below 12% if it doesnot mention in partnership deed.i.e 5%,ye 7%ye 9%.

You can take 12% or below.. if u claim more than 12% then the additional rate of interest will be disallowed as expenditure..

12% or rate of interest mentioned in deed which ever is lower will be allowed as deduction..

12% is the hogher side. u may addopt below then 12 %. there is no problem whith that.

As per section 40(b) 12% or rate mentioned in deed is adopetd MAx to 12%. it means  if deed provide more than 12 u are allowed to adopt only 12%.

and if nothing mention u mayaddopt 12%.

so 12% is the higer cap.

u can adopt below 12%