Partnership loss

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 September 2012 A partnership firm has incurred loss during the FY 2011-12. Now there are two issues :

(1) whether the loss is to be transferred to the partners in their sharing ratio or can be carried forward by the partnership firm?

(2) If loss is trff. to partners, will partners be able to adjust that loss from their business income? As if it was a profit, it would have been excluded from the income of partners u/s 10(2a).

Please suggest, its urgent.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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25 September 2012 1) Either you can transfer loss to partners account or can retain in the partnership firm
2) Profit from partnership firm is exempted u/s10(2a) as per the IT act no expenditure allowable regarding exempted income such as loss or any thing regarding for the exempted income.So loss from firm cann't get deduction from the partner's individual income. However loss from partnership firm shall be carry forward and shall be sett off against the profit earned by the firm in the future years upto 8 assessment years. This can be done only in the partnership firm return of income only.

OM SAI SRI SAI JAI JAI SAI

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

25 September 2012 Thanks a lot Sir.

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