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IS UNABSORBED DEPRRECIATION CAN BE SETOFF FROM SALARY OR NOT

CA Balram Sharma (CA) (839 Points)

04 November 2009

CAN UN ABSORBED DEPRECIATION CAN BE SETOFF UNDER THE HEAD SALARY AND NOT.

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21 Replies

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 04 November 2009

Not against Salary.., UNABSORBED DEPRECIATION CAN NEVER BE STEOFF AGAINST SELARY

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CA Hemant Kumar (CA, LLB (p), B.Com) (204 Points)
Replied 04 November 2009

no it can't be setoff

CA Trinath Galla (student) (3130 Points)
Replied 04 November 2009

It is mentioned that unabsorbed depreciation can be set-off against any other income other than income chargeable under the head salries.

now my doubt is whether it can be set-off against winnings from lotteries, crossword puzzles etc..??? as these incomes are taxable irrespective of the income levels of the concerned assesse, are they elgible for giving relaxation against unabsorbed depreciation????

it is no where mentioned that they can not be used for setting off losses or even unabsorbed can not be set-off against that incomes....

so can we set-off or consider it as a laccunae?

CA Devanshi Gandhi (Ajani) (FCA DISA Mcom CIFRS & LLB) (9060 Points)
Replied 05 November 2009

CA Devanshi Gandhi (Ajani) (FCA DISA Mcom CIFRS & LLB) (9060 Points)
Replied 17 November 2009

Sr.No.	Section	Types of Loss	Set Off against Income		Can be carried forward (subject to Notes 4 and 8) mmfor
Sr.No.	Section	Types of Loss	In same Assessment Year	In subsequent Assessment Year	Can be carried forward (subject to Notes 4 and 8) mmfor
1	71/72	Business or Profession(other than speculation or depreciation)	Business Income Head or any other head (other than salaries)	Business Income(Note 1)	8 years
2	32(2)	Unabsorbed Depreciation	Business Income or any other head	Business Income or any other head	Indefinitely

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C.Balaji (Learner) (1867 Points)
Replied 25 December 2009

unabsorbed depn. cannot be setoff against salary......

Vikram Gagneja (a/c) (108 Points)
Replied 25 December 2009

no business loss can be set off against income under the head whether unabsorbed dep or any other loss under the hear business or profession

MUTHUSAMY (CA FINAL & ACS FINAL) (253 Points)
Replied 25 December 2009

Yeshwanth (Chartered Accountant) (145 Points)
Replied 25 December 2009

Unabsorbed depreciation should be first set off against business income and then with any other head (Except salaries)

Archit (student) (54 Points)
Replied 27 December 2009

it cant be set off against salary

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Amir (Learner) (4016 Points)
Replied 27 December 2009

All those who are supporting that Unaborbed Depreciation cannot be setoff against Salary, Can please Justify with some provision, case law, etc because i couldn't find it anywhere..

Amir (Learner) (4016 Points)
Replied 27 December 2009

Answer to Trinath query is Unabsorbed dereciation cannot be set off against Winning from lottery, etc (Specific Provision of taxability of Winning from lotteries, etc will prevail over the general provision of setting off of Unabsorbed Depreciation)