1) Loss of firm can be carry forward by firm only

(2) It cannot be carry forward by partners

(3) In case of change in constitution of firm then that much portion cannot be carry forward, which exceeds retired/deceased partner’s profits share.

However,it does not apply to Unaborbed Depreciation


M/s. Vivitha & Co., a partnership firm, with four partners A, B, C and D having equal shares, furnishes the following details, summarized from the valid returns of income filed by it:

Assessment year Item eligible for carry forward and set off
2014-15 Unabsorbed business loss Rs.  1,20,000
2015-16 Unabsorbed business loss Rs.  1,90,000
2015-16 Unabsorbed depreciation Rs.  1,20,000
2015-16 Unabsorbed long-term capital losses: 300000
(from shares  Rs 1,10,000; -from building Rs 1,90,000



C  who  was  a  partner  during  the  last  three  years,  retired  from  the  firm  with  effect  from 1.4.2015.

What is amount of loss to be carry forward?

View Answer


  1. Income Tax
  2. Set off and Carry Forward of Losses

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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 11 years. He also provides Accounts Tax GST Training in Delhi and Pune.