I think various discussions went, and still noone with correct answer or sure answer appeared...
I'm talking about "UNABSORBED DEPRECIATION SET OFF AGAINS SALARY"
While, searching for the same, i got Some info. for it :
"Section 32(2) says that where the depreciation could not be set off against the profits and gains chargeable to tax, then it could not be set off against income under other heads. If the incomes under other heads are insufficient, then the ‘unabsorbed depreciation’ has to be carried forward to subsequent year for set off.
When it is carried forward it becomes ‘current’ depreciation of that year and hence eligible for set off against business income and also against any other head of income. Even depreciation of discontinued business could be set off against continued business income and other incomes.
However, whether it could be set off against salary income is somewhat dicey in view of in Section 71(2A) though the law prevents only the set off of business loss against salary income and not depreciation. "
- I GOT THIS POST FROM SOME OTHER TAX SITE......
So, above details state that business loss is avoided, but not the depreciation...
AND ITS NOT ME WHO STATES THIS, ITS MY DOUBT
CAclubindia
