Q.In the absence of an agreement among the partners, interest on capital is :

When partners have no deed at all, or their deed is silent on a point, the Indian Partnership Act, 1932 supplies five default rules that fill the gap automatically: profits and losses are shared equally regardless of capital or effort (Section 13(b)); no interest is allowed on partners' capital (Section 13(c)); no interest is charged on partners' drawings; interest on a partner's loan to the firm (as distinct from capital) is allowed at 6% per annum and is payable even in a loss year (Section 13(d)); and no partner is entitled to a salary, commission, or other remuneration for taking part …