Mera Samvidhaan All of Income-tax Act, 1961

Chapter VI · Aggregation of Income and Set Off or Carry Forward of Loss

78Carry forward and set off of losses in case of change in constitution of firm or on succession.

Section 78 · Chapter VI · Set off, or carry forward and set off · page 274 of the Act

(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.

Section 78 of The Income-tax Act, 1961 is reproduced in full above, as printed by India Code, with its footnotes and amendment markers. Read the whole Act, or browse every Act on Mera Samvidhaan.