18 October 2014
Thank you very much sir
In above case I have a more query
I charged depreciation as per co. Act & it should be allowed as per co. Act.
but due to depreciation there is a huge loss then it should be allowed as per Income Tax Act and be carry forward or not ?
18 October 2014
Depreciation allowed according to income tax act not according to Companies act . While calculating Tax able income you need to add the depreciation as per companies act (which provided in books) and deduct the depreciation as per income tax act . After above adjustment if company suffered a loss then it can be carried forward it it set off.
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