Set off of unabsorbed depreciation
This query is : Resolved
28 December 2013
Hello friends, I have a query regarding set off of unabsorbed depreciation against short term gain.
Ex.- During the previous year, a company earn Rs.20 lakhs short term capital gain by selling its fixed assets. In the same year company have loss of Rs.10 lakhs under the head income from Business/ profession. The unabsorbed depreciation of the company is Rs.25 lakhs carried forward from last previous year.
My query is whether the unabosrbed depreciation can set off against the short term capital gain after adjustment of current year loss.
Ex.- During the previous year, a company earn Rs.20 lakhs short term capital gain by selling its fixed assets. In the same year company have loss of Rs.10 lakhs under the head income from Business/ profession. The unabsorbed depreciation of the company is Rs.25 lakhs carried forward from last previous year.
My query is whether the unabosrbed depreciation can set off against the short term capital gain after adjustment of current year loss.
28 December 2013
No it cannot be it is to be adjusted only against business income. Why because the loss is from the head profit and gains of the business so you cannot adjust the same against ST income
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28 December 2013
Thank You Sir,
Is it allowable to adjust carry forward unabsorbed depreciation against interest income?
Is it allowable to adjust carry forward unabsorbed depreciation against interest income?
28 December 2013
Thank you Sir, Is it allowable to adjust carry forward unabsorbed depreciation against interest income?
28 December 2013
Hi
As per the provisions of the Income Tax Act, Loss from business and profession
can also be set off against income from other sources except income from owning and maintaining horse races, and lotteries and winnings from crossword puzzles.
Therefore the brought forward un-absorbed depreciation can be set off against interest income
Thanks//VaibhavJ
As per the provisions of the Income Tax Act, Loss from business and profession
can also be set off against income from other sources except income from owning and maintaining horse races, and lotteries and winnings from crossword puzzles.
Therefore the brought forward un-absorbed depreciation can be set off against interest income
Thanks//VaibhavJ
31 December 2013
Agreed with above ans.
31 December 2013
Agree with Agarwal Sir,
It can be set off against Business Income..
Priority for set off of depreciation, business loss may be in the following order:
Current Year’s Depreciation
Unabsorbed Business Loss
Unabsorbed Depreciation
It can be set off against Business Income..
Priority for set off of depreciation, business loss may be in the following order:
Current Year’s Depreciation
Unabsorbed Business Loss
Unabsorbed Depreciation
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