manish
(Article Assitant)
(358 Points)
Replied 15 January 2010
Hello friends, Unabsorbed depreciation can be set off against salary, loss from business and profession cant set off against from salary, plz read section 32(2) carefully, and read amendment also which show this things clearly, even u read ajay jain sir's book which fully cleared your doubt.
manish
(Article Assitant)
(358 Points)
Replied 16 January 2010
I am Damn Sure that Unabsorbed dep can be setoff against salary.
machender
(student)
(190 Points)
Replied 16 January 2010
Dear shafaf,
there is specific section covering this case plz read sec 71(2A)
which states as follows,
where in respect of any assessment year, the net result of the computation under the head "Profits and Gains from Businees" is loss and the assessee ha income assessable under the head "Salaries", the assessee shall not be entitled to have such loss set off against such income.
as unabsorbed Depreciation is a Business Loss it can't be set off against salary income.
you may be clear after reading this original text.
Jagdish Bhalia
(Practicing CA)
(453 Points)
Replied 16 January 2010
Unabsorbed depreciation can be set off against Income from Salary. Business loss cannot be sett off against salary which was governed by section 71 but the depreciation is governed by section 32(2). So In my opinion Unabsorbed depreciation can be set off against salary.
Ankit Goyal
(Article clerk)
(30 Points)
Replied 04 October 2010
unabsorbed depreciation can not be set off. however sec 32(2) does not restrict to set offf against salary head , if we read it but logicaly cant set off. IT deptt also not allowed to set off.
from Finance Act 2004 business loss can not be set off against salery head, ITS OBJECT TO PREVENT DUMMY BUSINESS LOSSES. AND ALSO WANT PREVENT DUMMY UNABSORBED DEP.
GENERALLY NOT POSSIBLE THAT A SALERY CLASS ASSESSE CAN HAVE ASSETS ON WHICH HE CLAIM DEPRECIATION. IF HE WAS SALERY EARNER THEN WHEN HE RUN BUSINESS?
sO LOGICALY CANT ALLOWED
BUT no case decided by court so untill unless no case is decided we have to take logical view HAS TO BE TAKEN
CAclubindia
