Loss of LLP on dissolution

[bhagyashree sathe]

One LLP incurring business loss of about 8 to 10 Lakhs of Rs, is being wound up.

Will this business loss be allowed to set off in the hands partners[ designated and others] agianst their business income?

Orelse could this be allowed as loss on account of investment in LLP?

Seeking for sections/rules under Income tax Act, opinion or article if any.

AI Summary

LLP Business Loss on Dissolution Not Offsettable Against Partners' Income: Seeking Relevant Income Tax Act Sections for Clarity An individual inquired about the tax implications of a Limited Liability Partnership (LLP) incurring a business loss of 8 to 10 lakhs upon dissolution and whether this loss can be offset against the partners' business income or considered as an investment loss. A respondent, Vivek Harsh, opined that the loss would not be allowed to be set off in the hands of the partners. The discussion sought references to relevant sections or rules under the Income Tax Act for further clarification.