jaggu
asked
Hi I am Jaggu. I am preparing for CA exam. I want to know about income tax. Can I know, Is any special provisions in case of carry forward of loss in case of a partnership firm if any partner of firm retires?
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Surbhi
answered
> Provisions relating to carry forward of loss in case of retirement of a partner from a partnership firm
Section 78 contains provisions relating to carry forward and set off of loss in case of change in constitution of a partnership firm due to death or retirement of a partner (i.e. when a partner goes out of firm by retirement or death). In such a case, the share of loss
attributable to the outgoing partner cannot be carried forward by the firm.
Restriction of section 78 is applicable only in case of loss and is not applicable in case of adjustment of unabsorbed depreciation, unabsorbed capital expenditure on scientific research or family planning expenditure.
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veeru
answered
Section 78 contains provisions relating to carry forward and set off of loss in case of change in constitution of a partnership firm due to death or retirement of a partner (i.e. when a partner goes out of firm by retirement or death).
ARJUN PRATAP SINGH
answered
Dear Friend,
as far as your query is concerned that Is any special provisions in case of carry forward of loss in case of a partnership firm if any partner of firm retires?
Let me informed that Section 78 contains provisions relating to carry forward and set off of loss in case of change in constitution of a partnership firm due to death or retirement of a partner (i.e. when a partner goes out of firm by retirement or death). In such a case, the share of loss attributable to the outgoing partner cannot be carried forward by the firm. Restriction of section 78 is applicable only in case of loss and is not applicable in case of adjustment of unabsorbed depreciation, unabsorbed capital expenditure on scientific research or family planning expenditure.
Hope answer was helpful to you
Regards,
Arjun Pratap Singh
