abhishek (STUDENT) (162 Points)
02 April 2010is depreciation an allowance or a business expenditure for the purpose of sec 32(2)?
i want to raise a very debateable Q. of setting off the un absorbed depreciation against salary?
please dear all, express ur invaluable views
will also look for a perfect answer , i mean ((((((yes or no))))))
Sunil Liladhar Kotak
(Manager (F & A))
(2025 Points)
Replied 03 April 2010
To my mind business loss can not be adjusted against the salary but the same is not applicable to the Unabsorbed depreciation.
Sunil Liladhar Kotak
(Manager (F & A))
(2025 Points)
Replied 03 April 2010
dear,
u can also go to the following link for the further clarification
C.Balaji
(Learner)
(1867 Points)
Replied 03 April 2010
Dear Friend.........
This topic has been discussed many times...............
But According to me....Since Unabsorbed depn is a business loss, it cannot be set off against salary..........
CA SAHIL MITTAL
(JOB)
(240 Points)
Replied 03 April 2010
In my opinion unabsorbed depreciation can be set off against any income......
It is not same as business loss. It can be carried forward for unlimited period and set off against any income (including salary)
CA Ayush Agarwal
(Kolkata-Pune-Mumbai)
(27186 Points)
Replied 03 April 2010
s
(-)
(216 Points)
Replied 03 April 2010
The question of claiming depreciation can arise only when there is a "Business".
Hence, Though Depreciation can be claimed even after 8 years, it cannot e set off agianst Salary, as it arises out of "BUSINESS ACTIVITY"
Only Self Occupied House Property Loss of any one property can be Set off
CHETAN
(CA STUDENT)
(154 Points)
Replied 03 April 2010
Dear all
UNABSORBED DEP CAN BE SET-OFF AGAINST INCOME FORM BUISNESS ONLY NOT WITH ANY OTHER INCOME. THERE IS A DIFFERENCE BETWEEN BUISNESS LOSS AND UNABSORBED DEP.
THERE IS NO SPECIFIC TIME LIMIT FOR SET-OFF UNABSORBED DEP BUT IN CASE OF BUISNESS LOSS THERE IS A LIMIT OF 8 YEAR STARTING FROM SUBSEQUENT YEAR TO PREVIOUS YEAR IN WHICH LOSS INCURRED.
C.Balaji
(Learner)
(1867 Points)
Replied 03 April 2010
| Originally posted by : s | ||
 |
The question of claiming depreciation can arise only when there is a "Business". Hence, Though Depreciation can be claimed even after 8 years, it cannot e set off agianst Salary, as it arises out of "BUSINESS ACTIVITY" Only Self Occupied House Property Loss of any one property can be Set off |
 |
Agree.....
CA Milap Mehta
(ACA)
(248 Points)
Replied 03 April 2010
Sec.32(2) provides that Where, in the assessment of the assessee, full effect cannot be given to any allowance under sub-section (1) in any previous year, owing to there being no profits or gains chargeable for that previous year91, or owing to the profits or gains chargeable being less than the allowance, then, subject to the provisions of sub-section (2) of section 72 and sub-section (3) of section 73, the allowance or the part of the allowance to which effect has not been given, as the case may be, shall be added to the amount of the allowance for depreciation for the following previous year and deemed to be part of that allowance, or if there is no such allowance for that previous year, be deemed to be the allowance for that previous year, and so on for the succeeding previous years.
So my friends, it clearly indicated that we have to treat Unabsorbed Depreciation as the Depreciation of Current Year until it is fully absorbed so according to me it cab not be set-off against Income from Salary as it is allowance deductible u/s 32(1) every year as stated in the section clearly..
Dharmendra kumar
(CA)
(201 Points)
Replied 03 April 2010
Unabsorbed depreciation cannot be set off against income from Salary.
Raj Saxena (1412th Tiger)
(Struggling Student)
(272 Points)
Replied 03 April 2010
MS SAMEER
(CMA*CA*CMDM*ast FUND MANAGER*LEGAL ADVISOR)
(14938 Points)
Replied 03 April 2010
The question of claiming depreciation can arise only when there is a "Business".
Hence, Though Depreciation can be claimed even after 8 years, it cannot e set off agianst Salary, as it arises out of "BUSINESS ACTIVITY"
Only Self Occupied House Property Loss of any one property can be Set off
ALSO AGREE
abhishek
(STUDENT)
(162 Points)
Replied 03 April 2010
yes milap ,,fully agreed with ur point of view but but this is not explicitly said anywhere in the law,so it cant be fully accepted that it cant be set off against salary.
CA Manish K Dhoot
(CA, B. Com, NCFM, CPCM)
(5015 Points)
Replied 03 April 2010
CAclubindia
