Interest on capital to partners in LLP allowed or not?

This discussion explores whether interest paid on capital contributed by partners in a Limited Liability Partnership (LLP) is allowed for tax purposes. The query specifically arises after a Private Limited company converted into an LLP, questioning potential contraventions of Section 47 of the IT Act. While the LLP deed permits interest at 12%, the core concern is its deductibility for the LLP and taxability for the partners without violating conversion provisions.