Unabsorbed Depreciation in ITR
This query is : Open
09 July 2011
If we only fill the Schedule BFLA/CYLA in form ITR 5 for the firm for unabsorbed depreciation, then it is not considered by CPC Bangalore unless we also fill the Schedule CFL. Now the problem arises as the schedule CFL consists only for unabsorbed Losses and not UNABSORBED DEPRECIATION. As per the Income Tax act Unabsorbed loss can be carried forward only for 8 years whereas for unabsorbed depreciation it is unlimited. so even if we enter the unabsorbed depreciation amount in schedule CFL, we cannot get it unlimited. On the other side if we do not consider the above then the demand arises for the amount written off for unabsorbed depreciation.
10 July 2011
It's better to show the Unabsorbed Depreciation Under the column Loss from Business in Schedule CFL. This is a better representation in the given circumstances when no specific column in this schedule has been provided for Un. Dep..
Have a memorandum or note in your file so that in the subsequent years you can set off it so.
(Be optimistic for the turnaround of the firm. It can not sustain losses successively up to 8 years. Either it will be dissolved.)
Have a memorandum or note in your file so that in the subsequent years you can set off it so.
(Be optimistic for the turnaround of the firm. It can not sustain losses successively up to 8 years. Either it will be dissolved.)
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11 July 2011
Thank you Sir,
We have already applied the above mentioned process but we have to see all the pros and cons as a CA. Just being optimistic can't resolve the problem. Law is clear but problem relates to software. Can't we suggest the software change to Income Tax India? This is a serious problem as it can create complicated consequences in future.
We have already applied the above mentioned process but we have to see all the pros and cons as a CA. Just being optimistic can't resolve the problem. Law is clear but problem relates to software. Can't we suggest the software change to Income Tax India? This is a serious problem as it can create complicated consequences in future.
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