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

The Income-tax Act, 1961Central Act · Act 43 of 1961

Repealed. This text is published for reference. It is not in force, and it should not be relied on as current law without checking what replaced it. Repealed by the Income-tax Act, 2025, with effect from 1 April 2026

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

(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.

Where this provision sits

ActThe Income-tax Act, 1961
Section78
Marginal noteCarry forward and set off of losses in case of change in consti­tution of firm or on succession
JurisdictionCentral
StatusRepealed
Judgments citing it5

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