24 December 2013
If, in a particular year there are losses or inadequate profits, depreciation amount may not be fully deductible. In such cases, the amount that cannot be deducted wholly or partially can be set off against any other income. If such unabsorbed depreciation cannot be adjusted against the income of the same year, it can be carried forward to next year and can be adjusted against any income of the next year and so on. Unabsorbed depreciation can be carried forward for any number of years without any limitation.
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