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If a partner in a partnership firm retires, are there any special provisions for loss carryover in that case?
In event of a change to the constitution of a partnership carrying to the death or retirement of a partner, carry-infection 78 contains provisions relating to carry forward and set off of a loss ( i.e. when a partner goes out of the firm by retirement or death). In this scenario, the company is unable to carry forward the portion of the loss that is attributable to the outgoing partner.
The section 78 restriction only applies to losses; it does not apply to adjustments of unabsorbed depreciation, capital expenditures on scientific research, architecture, or family planning
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