can unabsorbed depreciation loss set off against salary income
Set off losses
Swami Ayyappa Nuli (TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER) (1372 Points)
24 January 2014
Swami Ayyappa Nuli (TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER) (1372 Points)
24 January 2014can unabsorbed depreciation loss set off against salary income
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
Mihir
(Wealth Manager)
(5293 Points)
Replied 25 January 2014
No, business loss cannot be set off with the head income from salary
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
