Act Number: 43

Act Name: The Income-tax Act, 1961

Year: 1961

Enactment Date: 1961-09-13

Long Title: An Act to consolidate and amend the law relating to income-tax and super-tax

Ministry: Ministry of Finance

Department: Department of Revenue

Section 78: Carry forward and set off of losses in case of change in constitution of firm or on succession.
1 (1) Where a change has occurred in the constitution of a firm, nothing in this Chapter shall entitle the firm to have carried forward and set off so much of the loss proportionate to the share of a retired or deceased partner as exceeds his share of profits, if any, in the firm in respect of the previous year.
(2) Where any person carrying on any business or profession has been succeeded in such capacity by another person otherwise than by inheritance, nothing in this Chapter shall entitle any person other than the person incurring the loss to have it carried forward and set off against his income.
Notes:
1. Subs. by Act 18 of 1992, s. 40, for sub-section (1) (w.e.f. 1-4-1993). Earlier subs. by Act 4 of 1988, s. 20 (w.e.f. 1-4-1989) and restored by Act 3 of 1989, s. 95 (1-4-1989).
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