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Can a loss be carried forward by a reconstituted corporation in the event of a business constitution change?

Question

Can a loss be carried forward by a reconstituted corporation in the event of a business constitution change?

Expert Answer
Answered 25 Nov 2022
2176 views

 In most cases, the person who suffers a loss merely has the right to carry it forward to be corrected in the next year (s). However, the reconstituted corporation is eligible to carry forward the unadjusted losses of the prior organization in specific circumstances of reconstitution of the business, such as amalgamation, demerger, conversion of proprietary firm into a company, or conversion of partnership firm into a company, etc (provided that conditions specified in this regard are satisfied).

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