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Unabsorbed depreciation

MANOJ Na (27 Points)

26 October 2018

if I have income of 4 lakh from owning and maintenance of horses

and unabsorbed depreciation of 1 lakh

can I set off?

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6 Replies

CA Rakesh Joshi (Chartered Accountant ) (1272 Points)
Replied 26 October 2018

Yes. Unabsorbed depreciation can be set off against any income ( other than salary ).

So you can set off against income from maintaining race hourses.

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CA Rakesh Joshi (Chartered Accountant ) (1272 Points)
Replied 26 October 2018

Yes. Unabsorbed depreciation can be set off against any income ( other than salary ).

So you can set off against income from maintaining race hourses.

Hitesh (Student) (3549 Points)
Replied 26 October 2018

No you can't set off unabsorbed depreciation against owning and maintatining horse races since no loss can be set off against these special income under IT act

CA Rakesh Joshi (Chartered Accountant ) (1272 Points)
Replied 26 October 2018

Owning and maintaining race hourse is different from hourse race.

Income from hourse race is like gambling income. (Special income )

Income from owning and maintaing race hourse is not a special income.

Ashwin Kumar (1234 Points)
Replied 26 October 2018

the restriction does apply only to salary and other incomes can be freely used to set of unabsorbed depreciation carried forward from past years.in that case, yes you can set off unabsorbed depreciation.