In our private company, we have brought forward business losses of Rs. 8,01,749 and brought forward Long Term Capital Losses of Rs. 1,69,776 as on date. One shareholder holding 23.80% shares has passed away few months back. The husband of deceased shareholder has come up with a transmission request. I would like to know is there any restriction in Income Tax Act, for carry forward of losses to future years after change in beneficial ownership?
28 June 2016
as per section 79 at least 51% share voting power will remain same in current year, and your case will not cover in the tfr case. of section 79 are not applicable in case of change in share holding on account of death of shareholder or on account of transfer of shares by way of gift to any relative of the shareholder or change in shareholding in case of an Indian company which is a subsidiary of foreign company, when such foreign company is amalgamated/demerged with another foreign company and 51% or more shareholders of the amalgamating/demerged foreign company continues to be the shareholders of the amalgamated/resulting foreign company.