section 40b

It can be explained with an example
XYZ is a HUF and Mr. X is karta of HUF

If interest is paid by the firm to Mr.X as a Representative of HUF than it is called "interest paid by the firm to such individual otherwise than as a partner in a representative capacity"

But if interest is paid to Mr.X on Personal Capacity than is is called "interest paid by the firm to such individual as partner in a representative capacity"

Thank you so much

Most Welcome Kiran Ji