Tax depreciation

This query is : Resolved

S S Roy (Querist)
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02 October 2008 For FY 2000-01 (AY 2001-02), the carry forward of unabsorbed depreciation was restricted to 8 years. A Company X has an unabsorbed depreciation of Rs 2 cr for FY 2000-01 which is supposed to lapse in FY 2008-09.

Now I have received an opinion that such unabosorbed depreciation for FY 2000-01 would not lapse since the law has been changed before this carried forward depreciation has lapsed. Is this opinion okay?

Thanks, S S Roy

PIYUSH JAIN

PIYUSH JAIN (Expert)
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03 October 2008 Yes, now there is no limit to carry forward UNAb. depreciation.
Whatever is unabsorbed for the year of change in law will be treated as per changed law.