Clause 62 - Aggregation of losses in case of change in constitution of unincorporated body - Direct Taxes Code Bill, 2009

Aggregation of losses in case of change in constitution of unincorporated body 62. (1) The amount of 'unabsorbed current loss from ordinary sources' calculated under sub-section (4) of section 58, for the financial year ending on the date of the retirement, or death, of a participant, shall be reduced by the amount in proportion of the share of the retired, or deceased, participant. (2) The amount so reduced under sub-section (1) shall be the 'unabsorbed preceeding year loss from ordinary sources', for the financial year beginning on the date immediately following the date of retirement, or death, of a participant for the purposes of sub-section (3) of section 58. (3) The amount of 'unabsorbed current loss from the special source' calculated under sub-section (3) of section 59, for the financial year ending on the date of the retirement, or death, of a participant, shall be reduced by the amount in proportion of the share of the retired, or deceased, participant. (4) The amount so reduced under sub-section (3) shall be the 'unabsorbed preceeding year loss from the special source', for the financial year beginning on the date immediately following the date of retirement, or death, of a participant for the purposes of sub-section (2) of section 59. (5) The provisions of this section shall apply notwithstanding anything to the contrary contained in any other provision of this Code. (6) For the purposes of this Code, any reference to the 'unabsorbed preceeding year loss from ordinary sources' and 'unabsorbed preceeding year loss from the special source' in respect of an unincorporated body where a change has occurred in its constitution due to death, or retirement, of its participant, shall be construed as a reference to the amount so reduced under sub-section (1) and sub-section (3) respectively.