Is unabsorbed depriciation can be set off against salary income
43 Replies
pooja agarwal
(ipcc student)
(63 Points)
Replied 04 June 2010
no it is not possible at all. as under the head salary nothin cn b set off even unabsorbed depriciation
CA.G.Muguntha Narayanan
(Internal Auditor at TVS Motors)
(2195 Points)
Replied 04 June 2010
hi,
unabsorbed ep. can be set off against salary income. coz. as per section 71(2A), loss under Profts and gains cannot be set off under salaries. however, unabsorbed dep comes in section 32(2). nowhere in sec.32(2), it is mentioned that unabsorbed dep cannot be set off against salary
Max Payne
(employed)
(2574 Points)
Replied 04 June 2010
Hi Karan...
There is no restriction in the Income tax act..
Theoretically, you can set off,
But practically no one can do it because such a set off provision is not there in the income tax return.
(Electronic or manual - both do not have the provision to set off - see the schedule CYLA)
For an exam purpose, the answer is no, since it is a better view and it is practically adopted.
And salary income can be reduced by CURRENT YEAR LOSS from the follwing heads
a) House property,
b) Other sources.
vineeta
(Article of assistant)
(37 Points)
Replied 04 June 2010
sett of losses says salary cant be sett off by any head...be clear about that
Jagdish Bhalia
(Practicing CA)
(453 Points)
Replied 04 June 2010
Unabsorbed depreciation can be setoff against salary. Unabsorbed Depreciation is not a business loss governed by section 71.
Business loss cannot be set off against salary. In my opinion Unabsorbed epreciation canbe setoff against salary.
CA.G.Muguntha Narayanan
(Internal Auditor at TVS Motors)
(2195 Points)
Replied 04 June 2010
Dear Vineeta,
Unabsorbed dep. can be set off against salary. coz it is not governed by sec.71. Unabsorbed dep. is governed by sec.32(2). In sec.32(2), there is nothing specified that it cannot be set off against salary.So it can be set off against salary
Prasanth Nair V
(ACA,ACS,CWA Final,Mcom)
(557 Points)
Replied 04 June 2010
Yes, Unabsorbed Depriciation losses can be set off against any head. ie. it includes Salary. It is not covered under section 72,72,73,73A of the Income Tax Act. Therefore, it is not implcit in the act.
Max Payne
(employed)
(2574 Points)
Replied 04 June 2010
Dear Friends,
Pls feel free to take either stance..
But do believe me when i say that it SHOULD be set off
but it CANNOT be set off due to what i said in my first post.
I suggest, pls adopt a conservative view that reflects the
actual position an assessee faces when setting off his losses.
Ciao.
Mahesh
( CA Final)
(132 Points)
Replied 04 June 2010
hello sir, do u agree in sal you ill get loss? in sal no loss at all so other losses and Exp we can not seet off
so tell ans for this
Whil calculating EPS we ill deduct intrest, wat about principle amount wer we have to shown? if we do not shown the EPS will be more, but in new project while issuing Prospectus we have to show eps, i'm confussing this please help me
CA.G.Muguntha Narayanan
(Internal Auditor at TVS Motors)
(2195 Points)
Replied 04 June 2010
Dear Mahesh,
Unabso. dep. cam be set off in Salary. Nowhere in the IT.Act,1961 this has been prohibited. Unabsorbed dep. comes in sec.32(2). So it cannot be compared with business loss
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