Help in PGBP-Tax

Dear Friend.,In ur case, the excess of 3% is taxable disallowed in the case of firm, coz, u/s.40(b), only 12% is allowed as intrest

the interest income is taxable in the case of partner. However, it s taxable only to the extent of 12%, coz, the excess 3 % is already taxed in the case of firm.

So for firm, amount disallowed is Rs.60000

For partner, taxable interest is 2,40,000

Totally agreed with Mr. CA.G.Muguntha Narayanan