Unabsorbed depreciation

This query is : Resolved

Sushant Mahajan (Querist)
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06 September 2012 can unabsorbed depreciation being carried forward from 5 years be used to set off against incomes from the HEADS House property and Other Sources?

CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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06 September 2012 By Law Interpretation, Unabsorbed Loss Carried forward Can be Set Off Against Any Head Other Than Salary.
But This Matter Can be Taken in Court of Law.

Regards,

Sushant Mahajan

Sushant Mahajan (Querist)
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07 September 2012 BUT WHAT IF ONLY UNABSORBED DEPRECIATION IS BEING CARRIED FORWARD EVERY YEAR AND THERE IS NO BUSINESS INCOME FROM LAST THREE YEARS.

CAN THEN ALSO UNABSORBED DEPRECIATION BE SET OFF AGAINST INCOMES FROM HEADS LIKE HOUSE PROPERTY AND OTHER SOURCES?

EXAMPLE: unabsorbed depreciation being carried forward from last year is Rs 6 LAKHS

Income from House Property after 30% deduction is 3 LAKHS
Income from other sources is 2 Lakhs.

Can unabsorbed depreciation be be used to set off these 2 incomes?

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CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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07 September 2012 Yes, This Can Be Set Off.
Balance 1 Lac Again Can be Carried Forward & Eligible to Set Off Against Next Year Income.

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