Unabsorbed depreciaton


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This discussion clarifies the treatment of unabsorbed depreciation and allowance under Section 35(4). The balance carried forward from AY 2015-16, as shown in the ITR-6 for AY 2019-20, must continue to be reflected in subsequent ITR-6 filings for AY 2020-21 and onwards until it is fully absorbed. There is no time limit for this process.

24 February 2021 Schedule UD : Unabsorbed depreciation and allowance u/s 35 (4) Ay 15-16 Rs 2,85,642 is the balance carried forward to the next year is mentioned in the ITR-6 for the Ay 2019-20. Whether the same shall once again be reflected in ITR-6 for the Ay 2020-21 ? Please guide me and oblige.

24 February 2021 Yes, it has to be reflected in every year till it's absorbed, no time limit.

25 February 2021 Thanks with kindest regards
I am highly obliged for this information.


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