Partner A and Partner B have invested ₹3,00,000 and ₹5,00,000 respectively in a partnership firm. However, the partnership deed does not mention anything about interest on capital. For how long will interest on capital be provided in this case?

No interest

The correct answer is option 4- No interest.

No interest is provided if there is no clause in partnership agreement for the interest on capital.

Interest on Capital: No partner is entitled to claim any interest on the amount of capital contributed by him in the firm as a matter of right. However, interest can be allowed when it is expressly agreed to by the partners. Thus, no interest on capital is payable if the partnership deed is silent on the issue.