Interest On Contribution Under LLP

Whether interest on contribution is allowed under LLP? If yes, whether deduction of such interest would be allowed to LLP?
Posted 11 months ago  | 
Corporate Law,General Legal
Corporate Law General Legal

1 Answer(s)

Vishal Kumar Thakur
Advocate

Yes, interest on contribution is allowed but the same should be allowed under the LLP Agreement. However the deduction against such interest can be availed by LLP from its taxable income only if conditions of section 184 and section 40(b) of the Income Tax Act are satisfied.