can u tell under which section it was written c/f dep . for unlimited years
UNABSORBED DEPRECIATION
Page no : 2
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 27 January 2011
Up to assessment year 1996-97, unabsorbed depreciation was considered as the depreciation allowance of the succeeding year(s) and, thus, had an indefinite life for set-off against any head of income.
From assessment year 1997-98 to 2001-02 ('intervening period'), the law was amended and unabsorbed depreciation of a particular year was permitted to be carried forward for a period of eight years only, for a set-off against profits and gains of business or profession.
The law existing prior to the intervening period was reinstated with effect from assessment year 2002-03.
Vikash Shah
(Real Estate Developer)
(47 Points)
Replied 11 August 2011
hello
please help me in this little problem
Profit & loss account
purchase 1000 sale 1200
expenses 300
capital loss 200
speculative business loss 400
Book Depreciation 600
Net Loss 1300
Additional Info:
Dep as per IT 800
this is my solution:-
1. PGBP
profit from p/l (1300)
+book dep 600
+sp. business loss 400
+capital loss 200
-dep as per IT (800)
Non sp Business loss 900......to be c/f
Speculative business loss 400....to be c/f
2.C.G (200)......to be c/f
i am confused about unabsorbed depreciation. where it is?? how much to be c/f??
CA DURGESH PAL
(articls)
(51 Points)
Replied 20 April 2018
Unabsorbed depreciation= Total Business Loss as per computation of income - Depreciation as per income tax
1-Unabsorbed depreciation can be carry forward infinity year till end of business
2-Treatment for unabsorbed depreciation:
- Unabsorbed depreciation of current previous year shall be added to following previous year’s depreciation.
- It can be set-off against any head of income.
- It can be carried forward to any no. of years until it is fully set-off.
- In case of carry forward of business loss or speculation loss, the set-off shall be done after setting off current depreciation and such loss.
3. Continuity of business: Continuity of business is not relevant for set-off and carry forward.
4. Carry forward of depreciation: Depreciation can be carried forward by the same
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