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Query Details

Asked by Pankaj on :Jun. 21, 2018

In case of change in the constitution of bu…

In case of change in the constitution of business, can the loss be carried forward by the rec…

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

0

Jeeba Jun. 21, 2018

Generally, 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 latter reconstituted entity is allowed to carry forward the unadjusted loss of predecessor entity.

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