We are a partnership firm of two partners. One partner has contributed more than 3/4th capital. In absence of any clause in partnership deed regarding interest on capital, can we give interest on capital to only one partner who has contributed most. This is will be as per mutual understanding of both partners, since profit of firm is very less , it being first year of the firm. Please advise. Thanks in advance
Menu
Interest on Capital in absence of any clause in Partnership Deed
Replies (2)
If the deed mentions or not, it is unfair towards other partner. But, since it is a startup, you can do what you have suggested. However, it looks like you need it written in the deed.
https://www.taxadda.com/remuneration-and-interest-to-partners-section-40b/
https://www.charteredclub.com/section-40b/
Sorry, forgot to mention one important aspect, you will be given allowance and disallowance based on the criteria of registering under partnership act and making a deed. That is important because, it will impact net profits. This is some kind of company law I think.
Recent Threads
- 44ADA Business code 14005
- How to rectify Form 67 that is already submitted
- Which year to consider for Property tax if sold af
- Itr form for nil tax return
- FSI & FA for RSU Sale in ITR-2
- Capital gains taxation query vip 1
- TDS on sim card calling service
- ITC Claim 2024-25
- Transferring online money to father
- AY 2025-26 ITR 1,2 reg
Related Threads
CAclubindia
