Business loss set off

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BHARAT C AGHARA

BHARAT C AGHARA (Querist)
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26 July 2011 sir can i set off partner ship business loss again income of proprieter business profession

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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26 July 2011 Partnership loss is of the FIRM and not of the partners. So if a partner is also having a proprietorship concern then he cannot set off his share of loss in partnership from his profit in the proprietorship.

Only firm can carry forward it to next years and can set off it from the profit of future years.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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26 July 2011 Share in partnership firm is an income exempt from tax . (Section 10(2A))

Income exempt from tax does not make a part of the total income.

Question of set off against proprietor's business income would have arisen , had the
share in profit been a taxable income.

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