Dear All,
Please let me know the unabsorbed loss includes unabsorbed depreciation also or not.
9 Replies
N KRISHNA CHAITANYA
(CA Student)
(101 Points)
Replied 17 August 2010
NO
We must seperately disclose Unabsorbed Depriciation and Unabsorbed Business Loss / Loss in the return of Income
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 17 August 2010
HI DEAR,
UNABSORBED LOSS DOESN'T INCLUDE UNABSORBED DEPRECIATION.
E.G. IF BUSINESS LOSS AFTER DEPRECIATION IS 10,00,000 AND DEPRECIATION FOR THE YEAR IS 4,00,000. THEN U'R UNABSORBED BUSINESS LOSS WOULD BE RS.6,00,000 AND UNABSORBED DEPRECIATION WOULD BE 4,00,000.
UNABSORNED BUSINESS LOSS SHOULD BE CARRIED FORWARD AND AVAILABLE FOR SET OFF FOR 8 ASSESSMENT YEAR WHEREAS NO TIME LIMIT HAS BEEN PRESCIBED FOR UNABSORBED DEPRECIATION.
THUS, U MST SEGREGATE UNABSORBED BUSINESS LOSS FROM UNABSORBED DEPRECIATION IN ORDER TO GET MAXIMUM BENEFIT
HOPE THIS CLEARS ALL U'R QUERIES,
REGARDS,
MANOJ
abhishek
(Job)
(132 Points)
Replied 17 August 2010
no, unabsorbed loss includes unabsorbed depreciation .
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 17 August 2010
HI ABHISHEK,
WILL U PLEASE CONFIRM UNDER WAHT SECTION IT WRITTEN IN INCOME TAX ACT.
REGARDS,
MANOJ
Mamatha
(ACS)
(45 Points)
Replied 17 August 2010
It is under section 79,
where a change in shareholding has taken place in a previous year in the case of a company, not being a company in which the public are substantially interested, no loss incurred in any year prior to the previous year shall be carried forward and set off against the income of the previous year unless - (a) On the last day of the previous year the shares of the company carrying not less than fifty-one per cent of the voting power were beneficially held by persons who beneficially held shares of the company carrying not less than fifty-one per cent of the voting power on the last day of the year or years in which the loss was incurred :
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 17 August 2010
HI ABHISHEK,
AS PER SECTION 79, UNABSORBED LOSS DOESNOT INCLUDE UNABSORBED DEPRECIATION. AS THE CARRY FORWARD OF UNABSORBED DEPRECIATION ALLOWANCE, CAPITAL EXPENDITURE ON SCIENTIFIC RESEARCH OR FAMILY PLANNING STANDS ALTOGETHER DIFFERENT FOOTINGS, THEIR CARRY FORWARD AND SET OFF ARE NOT GOVERNED BY SECTION 79. THIS WAS DECISION IN CASE OF FOLLOWING :
CIT VS. CONCORD INDUSTRIES LTD. (1979)
CIT VS. SHRI SUBULAXMI MILLS LTD. (2001)
REGARDS,
MANOJ
Kalpesh Chauhan,
(Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com))
(8311 Points)
Replied 17 August 2010
| Originally posted by : N KRISHNA CHAITANYA | ||
 |
NO We must seperately disclose Unabsorbed Depriciation and Unabsorbed Business Loss / Loss in the return of Income |
 |
It is under section 79,
where a change in shareholding has taken place in a previous year in the case of a company, not being a company in which the public are substantially interested, no loss incurred in any year prior to the previous year shall be carried forward and set off against the income of the previous year unless - (a) On the last day of the previous year the shares of the company carrying not less than fifty-one per cent of the voting power were beneficially held by persons who beneficially held shares of the company carrying not less than fifty-one per cent of the voting power on the last day of the year or years in which the loss was incurred :
mehul kishnani
(student)
(264 Points)
Replied 17 August 2010
totally agree with Manoj. Abhishek pl check it out u r wrong
Parth - CA,CS,CMA
(Learner)
(406 Points)
Replied 17 August 2010
Carry forward of unabsorbed depreciation is governed by section 32.
While that of loss is by 79.
Recent Topics
- Avoiding tax audit in case of intraday equity loss
- Form 3CEAB
- Form 3CEAA and Form 3CEAB
- DIR 3 Web KYC
- Can i declare LTCG income as business income if I
- Stock entry in new software
- I have an EMI collection shop, what is its SAC cod
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
Related Threads
CAclubindia
