Interest on capital of or loan from partner of a firm is allowed as deduction to the firm to the extent of:
A. 18% p.a.
B. 12% p.a. even if it is not mentioned in partnership deed
C. 12% p.a. or at the rate mentioned in partnership deed whichever is less.
D. 6% p.a.
Answer:C
Interest on capital of or loan from partner of a firm is allowed as deduction to the firm to the extent of:
A. 18% p.a. B. 12% p.a. even if it is not mentioned in partnership deed C. 12% p.a. or at the rate mentioned in partnership deed whichever is less. D. 6% p.a.