Tax Professional and in Service
1795 Points
Joined June 2009
HI DEAR,
UNABSORBED LOSS DOESN'T INCLUDE UNABSORBED DEPRECIATION.
E.G. IF BUSINESS LOSS AFTER DEPRECIATION IS 10,00,000 AND DEPRECIATION FOR THE YEAR IS 4,00,000. THEN U'R UNABSORBED BUSINESS LOSS WOULD BE RS.6,00,000 AND UNABSORBED DEPRECIATION WOULD BE 4,00,000.
UNABSORNED BUSINESS LOSS SHOULD BE CARRIED FORWARD AND AVAILABLE FOR SET OFF FOR 8 ASSESSMENT YEAR WHEREAS NO TIME LIMIT HAS BEEN PRESCIBED FOR UNABSORBED DEPRECIATION.
THUS, U MST SEGREGATE UNABSORBED BUSINESS LOSS FROM UNABSORBED DEPRECIATION IN ORDER TO GET MAXIMUM BENEFIT
HOPE THIS CLEARS ALL U'R QUERIES,
REGARDS,
MANOJ