disallowance u/s.40(b)

Hi rishub

Sec. 40 any payment of interest to any partner which is authorised by, and is in accordance with, the terms of the partnership deed and relates to any period falling after the date of such partnership deed in so far as such amount exceeds the amount calculated at the rate of [twelve] per cent simple interest per annum is not allowable as deduction.

its only suggestion and others r welcome

Dear Chitan,
You mean that interest on loan is allowable as deduction upto 12%.

ya

it is allwable up to 12% and extra will be disallowed