Partnership after retirement

All parterns must follow terms and conditions of the partnership agreement. The partnership agreement is a document to bind the rights and liabilities of the partners including retired partner.

after retirement the firm should reconstitute the deed of partnership if the firm continues. Then the reconstituted firm can claim loss in the business as the firm status has been continued

after retirement the firm should reconstitute the deed of partnership if the firm continues. Then the reconstituted firm can claim loss in the business as the firm status has been continued

Under Income Tax Act 1961....

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

78. (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.