Distribution carry fwd of Loss in Partnership Firm

What is treatment of losses in partnership firm’s IT return? Is the loss carried forwarded in next year? Or divided among partners as per sharing ratio?

Loss is carried forwd ion the IT return of the firm.


Business loss can be carried forward for a period of 8 years following the previous year, provided you have filed the IT return within due date.
This can be set off only against business income arising during the period of the next 8 previous years.
Loss cannot be distributed to partners of the firm... it must be carried forward by partnership only.... But there is one section 78 of income tax act to look into.. The loss attributable to a retiring partner's share cannot be set off or carried forward by the firm.... Nor the share in Firm's loss can be carrd forwd by the retiering partner in his individual return.
However, this condition does not seem to cover unabsorbed depreciation.