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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INTEREST ON PARTNERS CAPITAL
Replies (3)
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%
actual interest incurred will be allowed as expenses subject to a maximum of 12% pa but the same needs to be incorporated in deed
Yes...
You can calculate Upto 12% also based on the Deed...
You can calculate Upto 12% also based on the Deed...
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