Question

In the absence of specific provision in the partnership deed rate interest on capital of the partners would be allowed ______ .

• A. 8%
• B. 10%
• C. 6%
• D. Nil

Answer 1

Answer: (D)

Nil

Where there is neither partnership deed nor express agreement or partnership deed is there but silent on any matter, then the relevant provisions of the Indian partnership act, 1932, would be applicable. As per these provisions, no interest is to be allowed on capital.