In India Partnerships are governed by the Indian Partnership Act 1932. The following are the rules applicable as per the Partnership Act in the absence of an agreement.
1. Prots and Losses – Prots and losses are to be shared equally among partners.
2. Salary or remuneration – Partners are not entitled to salary or any other remuneration.
3. Interest on capital- Partners are not entitled to interest on capital.
4. Interest on drawings – No interest is charged on drawings made by partners.
5. Interest on loan – partners are entitled to get an interest at 6% per annum for any loans they have given to the firm.