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Set off and carried forward of share of business losses

25 February 2013

An assessee is a partner in a firm and had incurred Business Loss, while computing his personal IT filing , The share of Income is exempt and the losses can be carried forward but can he set off the share of loss in his Personal It return wherein the income is one of the sources of business

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7 Replies

Akanksha Jain (Article) (690 Points)
Replied 25 February 2013

did the firm had incurred losses??

R.Vedanaryanan (CA) (37 Points)
Replied 25 February 2013

Yes the firm incurref loss

ANJALI NEGI (Chartered Accountant) (1263 Points)
Replied 25 February 2013

No he cannot set off his share of loss from the income of his indiviulal business. But the same can be set off against the profits of partnership firm

Akanksha Jain (Article) (690 Points)
Replied 25 February 2013

no.. share of profit is exempt in the hands of individual..

and is taxable for partnership firm..

*profit includes loss

and for the purpose of income tax firm and partners are different..

ANJALI NEGI (Chartered Accountant) (1263 Points)
Replied 25 February 2013

but the share of loss cannot be set off from the partners's indiviual business loss...

Akanksha Jain (Article) (690 Points)
Replied 25 February 2013

yes.. it cannot be set off..

Shivang Chokshi (C A ) (182 Points)
Replied 25 February 2013

share of profit from partnership in hands of partner is exempt.. thus the same way any loss from firm will only deplete the partner's capital in the firm.. the partner cannot use such loss to set off his own individual income.. it is firm's loss and firm will get benefit of carry forward and set off.