Whether interest on partners capital is allowable

1.wether intrest on capital to the partners is allowed even though the sales have not commenced in that financial year

2.wether intrest on loans borrowed for the purpose of investment in the capital of the partnership can be deducted from the invested on capital recived from the partnership in the partner individual retun of income 

 

Replies (1)

yes, interest on capital to partner is allowed as expenditure,subject to registered partnership deed

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register