Unabsorbed depreciation

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This query is : Resolved

nvrraj (Querist)

19 January 2013 Sir,
If during the AY 2012-13 income from other sources (i.e. interest on loans) RS 300000/-
and Brought Forward Unabsorbed Depreciation relating to AY 2002-03 is 250000, is it possible to set off both ?.
Thanks in advance.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

19 January 2013 Unabsorbed Depreciation Allowance (UDA)of AY 2002-03 can be set off against Income from Other Sources of A Y 2012-13.
.
U/s 32(2) it has been clearly mentioned that UDA becomes part of the Depreciation of the succeeding previous years.
.
Due to above, if business income of the subsequent year was insufficient to absorb the depreciation it could be set off against income under any other source in accordance with S. 70 and S. 71;
.

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CA Himanshu Kansal

CA Himanshu Kansal (Expert)

19 January 2013 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. It can be carried forward to next 8 AY's, except loss from depreciation, it can be carried forward for unlimited time period.

Therefore the brought forward un-absorbed depreciation can be set off against interest income

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Mohit Naithani

Mohit Naithani (Expert)

19 January 2013 Their is no restriction in number of years to carry forward Unabsorbed Depreciation and it can be setoff against any income except Income From Salary in subsequent years.

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Sulabh Jain

Sulabh Jain (Expert)

19 January 2013 Yes!! it is possible to set off any income (except salary) against unabsorbed dep.
and also there is no restriction of no of years for carry forward.
Therefore, you can set off your current year income with unabsorbed dep.

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