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INTEREST ON PARTNERS CAPITAL

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Associate
151 Points Posted on 29 October 2017
PARTNERSHIP DEED ALLOWS INTEREST ON CAPITAL @ 12% BUT WHAT IF INTEREST PAID IN ACTUAL FOR THE YEAR IS LESS THAN THE ALLOWED RATE; IS IT ADMISSIBLE?

SHOULD I FILL THE RATE OF INTEREST ON CAPITAL WHAT IS PÀID OR WHAT IS IN THE DEED IN FORM NO.5?
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On 29 October 2017 at 02:30 Report
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Tax Professional & Advisor
1421 Points Posted on 29 October 2017
Partnership deed allow maximum Rate in which you can give interest to partner as per partnership Act and same is allow under income-tax act but if you give less than decided rate then you give detail only what you paid actually and it is allow in income-tax which up to maximum 12%
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On 29 October 2017 at 04:37
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12244 Points Posted on 29 October 2017
actual interest incurred will be allowed as expenses subject to a maximum of 12% pa but the same needs to be incorporated in deed
35 Reply
On 29 October 2017 at 06:45
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"Do the Right Thing...!!!"
128147 Points Posted on 29 October 2017
Yes...
You can calculate Upto 12% also based on the Deed...
463 Reply
On 29 October 2017 at 06:46


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