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If the partnership deed is silent about interest on partners' capital, then
AInterest on capital is payable only if profits exceed a threshold
B6% interest must be paid as per the Act
CInterest at any reasonable rate may be claimed by the partners
DNo interest on capital is payable to any partner
Answer & Solution
Correct answer: D. No interest on capital is payable to any partner
No partner can demand interest on capital as a right. It is payable only if expressly provided in the deed. The 6% rule applies to LOANS to the firm, not to capital contribution.
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