Business loss, unabsorbed depreciation and fd interest

Profit before Tax as per PL                                     (300)

Add: Depreciation as per Companies Act 1956     28

Add: Bad Debt                                                               3

                                                                                       (269)

Less: Income from FD with bank                            57

Less: Depreciation as per IT Act                            43

Income from Business                                           (369)

Income from other sources                                      57

GTI/TI                                                                         (312)

Tax payable                                                               NIL

In this computation unabsorbed depreciation = 43. Is it correct to conclude that this unabsorbed depreciation is adjusted with other sources income or out of business loss (other than UD) 326, 57 is adjusted.

Please comment.

Replies (1)

Following is the calculation for set-offing & c/f of business & deprn loss

 

PBT -300
Deprn as per Co's Act 28
Deprn as per I-T Act -43
Bad Debts 3
Loss from Business -269
Deprn Loss -43
   
Income From Other Sources 57
   
Set-off with Business Loss First 57-269
   
C/F Business Loss 57-269
C/F Deprn Loss -43

Unabsorbed deprn loss of 4 can be c/f indefinitely.  Unabsorbed business loss of -212 shall be c/f for 8 a.Y.'s only

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