unabsorbed

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RAJESH SACHDEVA

RAJESH SACHDEVA (Querist)
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11 January 2011 what's the difference between UNABSORBED business loss and UNABSORBED depreciation?

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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12 January 2011 In case where the Business income of an assessment year is insufficient to set off the losses of the year then such losses (which could not be set off) can be carried forward to subsequent assessment year(s) for set off against income of such subsequent year(s).

Unabsorbed depreciation is Depreciation, which could not be fully absorbed in any previous year, owing to -
-- there being no profits or gains chargeable for that previous year; or
-- the profits or gains chargeable being less than the amount of depreciation

2) Set off and carry forward of unabsorbed depreciation shall be governed by sec. 32(2) and and unabsorbed business loss by sec. 72.

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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12 January 2011 3)Unabsorbed depreciation can be carried forward even if the return of income has not been filed within time but business loss can not be ..

4) Unabsorbed depreciation shall be allowed to be carried forward for any number of years and such carried forward unabsorbed depreciation may be set off against any income, other than under the head “Salaries” other then winning from lotteries,etc., but business loss is allowed to be carried forward for 8 years..

5) for Partnership firm Unabsorbed business loss shall be carried forward is 50 % of shares are held by same person in the year of occurrence of loss as well as in the year of adjustment , but unabsorbed depreciation shall always be allowed whatever be the %

RAJESH SACHDEVA

RAJESH SACHDEVA (Querist)
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12 January 2011 but sir one of the expert told me that unabsorbrd depreciation is attached to section 72,but u r saying ki it is linked with section 32(2), so m confused plz clear it

RAJESH SACHDEVA

RAJESH SACHDEVA (Querist)
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12 January 2011 plz manmohan ji give
answer

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