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Home List Manuals Income TaxIncome Tax - Frequently Asked Questions (FAQs)FAQs on Set Off and Carry Forward of Losses This

Income Tax - Frequently Asked Questions (FAQs)

FAQs on Set Off and Carry Forward of Losses

In case of change in the constitution of business, can the loss be carried forward by the reconstituted entity?

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Ans. Generally, the person incurring the loss is only entitled to carry forward the loss to be adjusted in subsequent year(s). However, in certain cases of reconstitution of the business like amalgamation, demerger, conversion of proprietary firm into company or conversion of partnership firm into company, etc., the reconstituted entity is entitled to carry forward the unadjusted loss of predecessor entity (provided that conditions specified in this regard are satisfied).

 

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