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Unabsorbed depriciation not adjusted in succeeding year

309 views 2 replies

sourav

apprentice

25 Points Joined September 2011

Dear members,

I had an unabsorbed depriciation in the A.Y 2011-12 , which my accountant missed while filling the subsequent year returns , having sufficient business income to adjust the unabsorbed depriciation.

This came to my attention while the return for AY 2014-15 was in process. when highlighted my accountant adjusted it in this return.

Please give your views on the correctness of the above situation. Whether my accountant is correct? If not then the remedy or consequences?

Replies (2)

sachin bajaj

Student CA Final

30 Points Joined March 2013

unabsorbed depreciation can be carried forward indefinitely and can be set off against any income (except salary) in the subsequent years. Set off should be in following order :- 1. current year depreciation 2. brought forward business loss 3. brought forward unabsorbed depreciation. So keeping in mind these provisions u can set off unabsorbed depreciation.