Interest to Partners

Yes, the partner is very much eligible for interest on the capital introduced.

 He has negative Balance (Dr ) Balance in Firms Books.

According to section 40 b following condition have to be followed

1.Interest payment should be authorize by partnership deed

2.Should pertain to partnership deed period and

3.Rate of Interest should not exceed 12 %

Thus there is no provision that the interest should not be paid to the partner if he has any debit balance in his account.