A company has Rs 1L of Unabsorbed Depreciation in FY 2014-15. Company has PGBP loss of Rs 50,000 and interest income of Rs 2L FY 2019-20.
After offsetting Rs 50,000 loss, the company has interest income of Rs 1.5L.
My question is whether the company can offset Unabsorbed Depreciation of FY 1L. If yes, where we have to show it in the return.
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Offsetting Unabsorbed Depreciation of previous FY with IFOS of CY
Replies (2)
I’m not sure about this, but under the intra head setoff exception tax rules, a business loss can be set off against income from same business activities. Considering this, I think you can setoff unabsorbed depreciation. Rather, it automatically sets off because trading income is revenue minus expenses. By this, your taxable profits will be 50,000₹.
I have got it. Income under all the head except salary can be offset with Unabsorbed Depreciation. The amount that we want to adjust should be disclosed under "Unabsorbed Depreciation'.
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