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INTEREST ON CAPITAL

RAHUL (A) (35 Points)

12 August 2008

HOW WE CALCULATED INTEREST ON CAPITAL IN PARTNERSHIP FIRM PLZ GIVE ME ANY EXEMPLE

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Rahul Jaiswal (Services) (68 Points)
Replied 12 August 2008

As Per Income-Tax the maximum interest can be paid is 12% otherwise if it is more than 12% than the above 12% part will be disallowed. The other thing is that the same should be written in partnership deed and if any change occure than it should be applied from that date not before or u can say prospective effect