Unit_8_Partnership_and_other_cases

In that elects case hisher share of loss will be

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Unformatted text preview: s personal assessment. In that elects case, his/her share of loss will be transferred to PA to set off against his other income (if any) for that YA & any excess loss will be carried forward under personal assessment. Unit 8 ­ Partnership Unit If a partner has a share of loss and he does not elect PA Upon retirement from the partnership, any unrelieved loss will Upon lapse [i.e. lost forever] [i.e. Unrelieved loss cannot be transferred to another partner Unrelieved Re-Allocation of Profit/Loss Re If after allocation, one partner has losses, while other partners If have profits, the loss has to be re-allocated to other partners with profits under the sharing ratio of those partners. profits No loss can be allocated to any individual partner if there is an No overall assessable profit. Unit 8 ­ Partnership Unit Loss Relief for Corporate Partners Corporate Partner has a share of loss in the partnership business but earned Corporate loss business assessable profit in its own business assessable Set-off against the assessable profit of its own business under section 19C(5) under Excess loss to be carried forward to set off its share of partnership profit (if any) Excess in subsequent years before setting off the assessable profit of its own business before Corporate Partner has a share of loss in its own business but earned assessable Corporate profit in the partnership business profit Set-off against the assessable profit of its share of partnership under section Set-off 19C(4) 19C(4) Excess loss to be carried forward to set off the assessable profit (if any) of its own Excess business before setting off its share of assessable profit from the partnership business Unit 8 ­ Partnership Unit Change in Partnership Section 22(3) If there is a change in persons constituting a partnership e.g. death, If retirement, admission of new partner, the business is to be treated as continuous so long as at least one person who was a partner before the change is also a partner after the change Separate Allocation for Assessable Profits in Di...
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