Unabsorbed depreciation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2012 if there is no profit before charging depreciation and we carry f/w the loss including depreciation to next year as well as the unabsorbed depreciation. then there will be double deduction in next year regarding depreciation. how can it be possible? and what shud be its treatment?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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20 July 2012 .
Before Providing the Depreciation , Loss is Rs. 10000.
.
Depreciation of Rs 25000 is not included in the 10000. If we include 25000/ the loss becomes 35000.
.
Your confusion is ....
in the next year we will c/fd the loss of Rs.35000/- as well as Depreciation of Rs. 25000/-
.

Whereas....
in the next year we will c/fd the Business Loss of Rs.10000/- as well as Depreciation of Rs. 25000/-. Total will be 35000/ only.
.

SANYAM ARORA

SANYAM ARORA (Expert)
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21 July 2012 Agreed with Paras Sir

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Querist : Anonymous

Querist : Anonymous (Querist)

22 July 2012 then how we will show this; in IT return? the computax software is carry forwarding the loss of 35000 as well as the depreciation 25000. it means we have to add the the depreciation first to c/f the loss.