Become Govt. Certified GST Practitioner in just 58 hrs. Register Now!

Loss from the partnership firm

ANIL KUMAR KHETAN (PROPRIETOR) (542 Points)

15 November 2021

Share loss from partnership in the hands of partners are exempted under section 10(2A) or only for accounting purpose . Please clarify the position

Reply
Follow
Share

4 Replies

Vishal Manakshe (299 Points)
Replied 15 November 2021

As profit from partnership is exempt u/s 10(2A), loss shall also be exempt. Which means that we shall not setoff partnership loss with our pgbp/other income

Upgrade to CAclubindia Pro. Subscribe Now!

ANIL KUMAR KHETAN (PROPRIETOR) (542 Points)
Replied 15 November 2021

Some view according to 10(2A) explanation only positive income(Share profit) exempted and negative figure ( loss) be accounting purpose and carried forward in the hands of partnership firm . It is correct or not . Please clarify

Vishal Manakshe (299 Points)
Replied 15 November 2021

Yes, we can say that, loss is for accounting purpose only, but if you do not show such loss in partner's ITR, then partner might get mismatch notice.

so it is better to show "loss from partnership" in the hands of partner but do not setoff such loss with any income

ANIL KUMAR KHETAN (PROPRIETOR) (542 Points)
Replied 15 November 2021

Share loss from partnership firm shown in capital account of individual and not shown in ITR in partnership firm income .My view it is right view. Please replay on this point