Loss adjustment after new constitution
This query is : Resolved
ABDUL VAJEED
(Querist)
29 August 2012
Hi All,
My client is running a partnership firm and it has loss from past 4 years , Every year we are setting off the loss a bit as its making profits now,
Now still we have some loss left out to be set off in the firm,
Now the Firm is converting as Proprietorship
Two partners are getting split and in future two business will run as proprietorship ,
How should i carry forward the loss of firm in future ?
Should i take the loss in Ratio of profit or what ?
How to declare in ITR ?
Pls help
My client is running a partnership firm and it has loss from past 4 years , Every year we are setting off the loss a bit as its making profits now,
Now still we have some loss left out to be set off in the firm,
Now the Firm is converting as Proprietorship
Two partners are getting split and in future two business will run as proprietorship ,
How should i carry forward the loss of firm in future ?
Should i take the loss in Ratio of profit or what ?
How to declare in ITR ?
Pls help
CA Ayush Agarwal
(Expert)
29 August 2012
Yes, There is No Provision for Converting Partnership firm to Prop. Concern for C/f of Loss in Income Tax Act.
You Can C/f S/o Loss as Per Their ration Was.
You Can C/f S/o Loss as Per Their ration Was.
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