unabsorbed depreciation

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pradeep (Querist)
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27 January 2011 In case of continuing business can unabsorbed depreciation can be set off against any income in the same year ?

And in subsequent year against which income ?

2. If the business is discontinued, can unabsorbed depreciation be set off against any income in the year of discontinuance or in the next year

and what are the head with which it cannot be set off?

pls give me ur answer with sections and selected cases if any

C.A.Javid Patel

C.A.Javid Patel (Expert)
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27 January 2011 1. As per the Provisions of Income Tax Act the Unabsorb Depreciation can be setoff against any head of Income in the same year and also in the next year.

2. if the business discontinue then in the year of discontinue in the same year it can be setoff against any head but from next year it cannot setoff.

pradeep

pradeep (Querist)
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27 January 2011 sir the answer to 2 which is given by u , can u elaborate that i m not understanding properly

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Guest

Guest (Expert)

27 January 2011 Simply, it can be understood that unabsorbed depreciation will form part of succeeding year's depreciation.