Set off losses

Tax queries 435 views 2 replies

can unabsorbed depreciation loss set off against salary income

Replies (2)

 

No, in my view, it cannot be set off against salaries.

Unabsorbed depreciation is covered under section 32(2) and business loss is covered u/s 71(2A).

U/s 71(2A) business loss cannot be set off against salaries. u/s 32(2) unabsorbed depreciation is to be treated as current year's depreciation. Finally, even current depreciation forms a part of business loss/ profit.

Chennai ITAT in the case of Chandrakumar vs. ACIT (129 TTJ 489) has disallowed the set off unabsorbed depreciation against the salary income.

 

see link below.

https://wirc-icai.org/wirc_referencer/income%20tax%20&%20wealth%20tax/Set%20Off%20And%20Carry%20Forward%20of%20Losses.htm

No, business loss cannot be set off with the head income from salary


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