Share loss from partnership in the hands of partners are exempted under section 10(2A) or only for accounting purpose . Please clarify the position
Replies (4)
Quick Summary
This discussion explores whether losses from a partnership firm are exempt for partners under Section 10(2A), similar to profits, or if they are merely for accounting purposes. While some argue losses should be exempt and not offset against other income, others suggest they are only for accounting and should be carried forward by the firm. The consensus leans towards showing the loss in the partner's ITR for compliance, but not setting it off against other income to avoid potential mismatches.
As profit from partnership is exempt u/s 10(2A), loss shall also be exempt. Which means that we shall not setoff partnership loss with our pgbp/other income
Some view according to 10(2A) explanation only positive income(Share profit) exempted and negative figure ( loss) be accounting purpose and carried forward in the hands of partnership firm . It is correct or not . Please clarify
Share loss from partnership firm shown in capital account of individual and not shown in ITR in partnership firm income .My view it is right view. Please replay on this point