is depreciation an allowance or a business expenditure for the purpose of sec 32(2)?
i want to raise a very debateable Q. of setting off the un absorbed depreciation against salary?
please dear all, express ur invaluable views
will also look for a perfect answer , i mean ((((((yes or no))))))
To my mind business loss can not be adjusted against the salary but the same is not applicable to the Unabsorbed depreciation.
dear,
u can also go to the following link for the further clarification
Dear Friend.........
This topic has been discussed many times...............
But According to me....Since Unabsorbed depn is a business loss, it cannot be set off against salary..........
In my opinion unabsorbed depreciation can be set off against any income......
It is not same as business loss. It can be carried forward for unlimited period and set off against any income (including salary)
The question of claiming depreciation can arise only when there is a "Business".
Hence, Though Depreciation can be claimed even after 8 years, it cannot e set off agianst Salary, as it arises out of "BUSINESS ACTIVITY"
Only Self Occupied House Property Loss of any one property can be Set off
Dear all
UNABSORBED DEP CAN BE SET-OFF AGAINST INCOME FORM BUISNESS ONLY NOT WITH ANY OTHER INCOME. THERE IS A DIFFERENCE BETWEEN BUISNESS LOSS AND UNABSORBED DEP.
THERE IS NO SPECIFIC TIME LIMIT FOR SET-OFF UNABSORBED DEP BUT IN CASE OF BUISNESS LOSS THERE IS A LIMIT OF 8 YEAR STARTING FROM SUBSEQUENT YEAR TO PREVIOUS YEAR IN WHICH LOSS INCURRED.
| Originally posted by : s | ||
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The question of claiming depreciation can arise only when there is a "Business". Hence, Though Depreciation can be claimed even after 8 years, it cannot e set off agianst Salary, as it arises out of "BUSINESS ACTIVITY" Only Self Occupied House Property Loss of any one property can be Set off |
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Agree.....
Sec.32(2) provides that Where, in the assessment of the assessee, full effect cannot be given to any allowance under sub-section (1) in any previous year, owing to there being no profits or gains chargeable for that previous year91, or owing to the profits or gains chargeable being less than the allowance, then, subject to the provisions of sub-section (2) of section 72 and sub-section (3) of section 73, the allowance or the part of the allowance to which effect has not been given, as the case may be, shall be added to the amount of the allowance for depreciation for the following previous year and deemed to be part of that allowance, or if there is no such allowance for that previous year, be deemed to be the allowance for that previous year, and so on for the succeeding previous years.
So my friends, it clearly indicated that we have to treat Unabsorbed Depreciation as the Depreciation of Current Year until it is fully absorbed so according to me it cab not be set-off against Income from Salary as it is allowance deductible u/s 32(1) every year as stated in the section clearly..
Unabsorbed depreciation cannot be set off against income from Salary.
The question of claiming depreciation can arise only when there is a "Business".
Hence, Though Depreciation can be claimed even after 8 years, it cannot e set off agianst Salary, as it arises out of "BUSINESS ACTIVITY"
Only Self Occupied House Property Loss of any one property can be Set off
ALSO AGREE
yes milap ,,fully agreed with ur point of view but but this is not explicitly said anywhere in the law,so it cant be fully accepted that it cant be set off against salary.
CAclubindia
