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Query Details

Asked by Pankaj on :Jun. 21, 2018

Can the loss be carried forward by the reconstitu…

Can the loss be carried forward by the reconstituted entity, in case of change in the constitution …

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

0

Jeeba Jun. 21, 2018

Normally, the person incurring the loss is only entitled to carry forward the loss to be adjusted in the subsequent year.

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 subject to the conditions stated in the act.

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