Tax depreciation carry forward

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S S Roy (Querist)
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01 October 2008 For FY 2000-01 (AY 2001-02), the carry forward of unabsorbed depreciation was restricted to 8 years. A Company X has an unabsorbed depreciation of Rs 2 cr for FY 2000-01 which is supposed to lapse in FY 2008-09.

Now I have received an opinion that such unabosorbed depreciation for FY 2000-01 would not lapse since the law has been changed in the meantime restoring the earlier unlimited carry forward of Tax depreciation. Is this opinion okay?

Thanks, S S Roy

CA Gaurav Khanna

CA Gaurav Khanna (Expert)
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01 October 2008 There is no limit for the purpose of carrying forward of unabsobed depreciation

Ravikumar.G

Ravikumar.G (Expert)
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01 October 2008 u/s 32(2) - Brought forward unabsorbed depreciation:
Set off against any head of income
Unabsorbed depreciation loss can be carried forward for any number of years until it is fully set off.

Ravikumar.G

Ravikumar.G (Expert)
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01 October 2008 The opinion is correct.

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