Loss from partnership

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 July 2014 Sir
Loss from partnership business is debited in partners capital a/c in sharing ratio and in firms ITR 5 such loss carried forward for next year and in personal return of partners such loss not claimed as loss is it right ?

Sandeep Dharar

Sandeep Dharar (Expert)
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18 July 2014 No u must have to claim the loss in individuals return. That will shorten ur Taxable amount.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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18 July 2014 you wont get any benefit of claiming loss from partnership in individual returns as it cannot be set off against any other income in the individual's return (as this is an exempt income). The loss will be carried forward in the ITR-5 itself.

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Querist : Anonymous

Querist : Anonymous (Querist)

19 July 2014 I agree with Nikhil Kaushik and Associates that loss cannot be set off against personal income of partners.my further query is that i have not shown above loss in balance sheet of firm a have debited the above loss in partners capital a/c during the year and as per income tax return in ITR 5 i carry forward such loss can i do this ? please clerfy this

Thnaks

Nikhil Kaushik

Nikhil Kaushik (Expert)
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19 July 2014 Dear Querist,

It doesnt matter what accounting treatment you have given in the capital accounts. for the income-tax purposes, the loss as arrived in the Tax p&l will be carried forward automatically.