Tax depreciation carry forward

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This query is : Resolved

S S Roy (Querist)

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)

01 October 2008 There is no limit for the purpose of carrying forward of unabsobed depreciation

Ravikumar.G

Ravikumar.G (Expert)

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)

01 October 2008 The opinion is correct.

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