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IS UNABSORBED DEPRRECIATION CAN BE SETOFF FROM SALARY OR NOT

2835 views 61 replies

Yes G.K.  Bhai,

I totally agree with you as in the return there is no option for setting it off with the head salary so practically cant be setoff.

I only  wanted to say that if we look into the act then it is nowhere clarified that it cant be setoff against the salary head.

Regards

Rajat

 

CARRY FORWARD AND SET OFF OF LOSSES

Unabsorbed loss under house property, capital loss and business loss can be carried forward for 8 years. Unabsorbed speculation business loss can be carried forward only for a period of 4 years.

Loss can be carried forward and set off even if the business in respect of which it was incurred has been discontinued. However, such loss cannot be set off against income under any other head. An exception exists in respect of unabsorbed depreciation from business which can be set off against any other source of income in the absence of business income and can be carried forward indefinitely, even if the business through which depreciation was incurred has ceased to exist.

Carry forward of losses (other than loss from house property and unabsorbed depreciation) is permissible if the return of income for the year, in which loss is incurred, is filed in time. The late filing of return should not impact the status of carry forward of loss of previous years.


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