Mr. A is a partner of M/s ABC. He gets partner remuneration and interest on capital from partnership firm. This income is taxable under the head Profit and Gains from Business & Profession in his personal IT Retrun. He also borrowed money from market and paid interest on such borrowed money. Now the question is that can Mr. A claim interest expenses against the partner remuneration received from the firm. Although he can claim interest expenses against the interest on capital but can he also claim interest expenses against partner remuneration. Any provision or relevant case law if you have pls guide.
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Expenses set off
Replies (1)
Yes u can claim exemption regarding interest paid on Loan provided u should prove that such loan is taken for the purpose of Investing in partnership firm.this is because both interest and remuneration received is in the nature of Business income,u can have deduction regarding loan taken
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