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Negative capital for individual

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(Querist)
02 October 2024 whether may be negative capital for individual or what may be reason for negative capital.
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
03 October 2024 Yes, in case of loss the capital will be eroded.
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Manish

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Manish (Expert)
03 October 2024 The reason is individual has unlimited liability unlike limited companies. And his future incomes will be used to repay existing liabilities.
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