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Rules relating to set-off of unabsorbed depreciation???

CA Trinath Galla (student) (3130 Points)

04 November 2009

It is mentioned that unabsorbed depreciation can be set-off against any other income other than income chargeable under the head salries.

now my doubt is whether it can be set-off against winnings from lotteries, crossword puzzles etc..??? as these incomes are taxable irrespective of the income levels of the concerned assesse, are they elgible for giving relaxation against unabsorbed depreciation????

it is no where mentioned that they can not be used for setting off losses or even unabsorbed can not be set-off against that incomes....

so can we set-off or consider it as a laccunae????

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8 Replies

Sunil (Trader) (2611 Points)
Replied 04 November 2009

Income from lotteries, puzzles etc. are taxed at special rate. No deductions are allowed in these incomes. You cannot claim any expense against them even if you incurred an expense exclusively to receive these incomes. Therefore, I do not think you will be allowed to set off any losses.

CA Trinath Galla (student) (3130 Points)
Replied 04 November 2009

but there is no provision that it can not be set-off.

if it is so, it shld mention that u.d can be set-off against any other incomes other than salaries n winnings from lotteries etc...

but it is only mentioned that it can be set-off against any income other than salary income

Sumit Jain (CA) (4760 Points)
Replied 04 November 2009

unabsorbed depreciation can also be set off from the income under the head salaries

but not from lottries

it is specially taxed at flat @ 30%

CA Trinath Galla (student) (3130 Points)
Replied 04 November 2009

Originally posted by :Sumit Jain
"	unabsorbed depreciation can also be set off from the income under the head salaries but not from lottries it is specially taxed at flat @ 30%	"

hello Mr.Sumit, it cannot be set-of against salaries.

u r bringing the discussion to the base again

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 04 November 2009

Originally posted by :Sumit Jain
"	unabsorbed depreciation can also be set off from the income under the head salaries but not from lottries it is specially taxed at flat @ 30%	"

Yaar, tu mujhe bas ye bata de, from where u got this information that UNABSORBED DEPRECIATION can be set off against SALARIES... I think u've posted this in other forum tooo...

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 04 November 2009

"In case of income in the nature of winning from lotteries, crossword puzzles, races including horse race and games of any sorts, etc, no deduction for expenses or allowances shall be allowed which are incurred in connection with such income. However, this provision of disallowance does not apply in computing income from the activity of owning and maintaining race horses of an assessee being the owner of the horses maintained by him for running in horse races."

So., Mr. Trinath... I think it should not be allowed.. I know, its nowhere mentioned about unabsorbed depreciation.., but i think its to be understood.. When the expenses spent on such incomes itself are not allowed for deduction, then how can an unabsorbed depreciation,....

But still, let some experts post their commetns...