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How to disclose unabsorbed depreciation in profit and loss a

varsha naik (Chartered Accountant) (303 Points)

28 November 2015

Hello Friends,

How to disclose unabsorbed depreciation in Profit and Loss Account and in statement of calculating taxable Income?

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6 Replies

naresh_ca (Post Articleship) (39 Points)
Replied 28 November 2015

depreciation total amount is to be shown in profi and loss account.

then if the loss is more than the amount of depreciation then total deprection is unabsorbed and remaining loss is businee loss.

if loss is less than depreciation then the total loss is unabsorbed.

there is no separate presention but to be maintained separately for income tax coomputations

varsha naik (Chartered Accountant) (303 Points)
Replied 28 November 2015

My Business loss before claiming Depreciation is 5000

and Depreciation is 50000

How to disclose in profit and loss account and in statement of total income?

naresh_ca (Post Articleship) (39 Points)
Replied 28 November 2015

In the profit and Loss account you will have a total loss of 55000 and in the statement of total income you have to show loss 5000 as business loss and 50000 as unabsorbed business loss

naresh_ca (Post Articleship) (39 Points)
Replied 28 November 2015

In the profit and Loss account you will have a total loss of 55000 and in the statement of total income you have to show loss 5000 as business loss and 50000 as unabsorbed depreciation

varsha naik (Chartered Accountant) (303 Points)
Replied 28 November 2015

Partnership firm is real estate but real estate business not started. For the time being it is carrying on agricultural activities.

Can unabsorbed depreciation in case of agricultural business be carried forward and set off against Real estate business profit in future?

Karthik.V.Kulkarni (Chartered Accountant) (594 Points)
Replied 28 November 2015

As agriultural income is exempt then depreciation cannot be carried forward by virtue of sec 14A. But if agricultural is partially taxable as per rules then only apportionable expense can be claimed and if depn is apportionable then same can be carried forward. The wdv has to be calculated as per sec 43 (6).