set off

u cannot set off unabsorbed dep against salary

yes unabsorbed depreciation can not be set off against salary

Unabsorbed depreciation is a loss under the head "business" and no loss under the head "business or profession" can be set off against salary income.

yes it can be set off with salary income...

hey frndz..

actually business loss is set off under section 72 and unabsorbed depreciation under sec 32..

2sections are mutually exclusive.. and section 32 is totally silent on set off of unabsorbed depre against salary...

even there is supreme court judgement Virmani Inds Pvt Ltd v/s CIT - 216 ITR 607 which also says it can be adjusted against any head of income.. no exception is also mentioned there...

Originally posted by : Krunal
	hey frndz.. actually business loss is set off under section 72 and unabsorbed depreciation under sec 32.. 2sections are mutually exclusive.. and section 32 is totally silent on set off of unabsorbed depre against salary... even there is supreme court judgement Virmani Inds Pvt Ltd v/s CIT - 216 ITR 607 which also says it can be adjusted against any head of income.. no exception is also mentioned there...

I disagree.  Read Section 71(2A). 

As I had said earlier, depreciation is actually a loss under business, though it may be treated seperately u/s 32.  Set off is head specific and not section specific.  Virmani Industries is an old case before introduction of 71(2A).