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Tax query answer

Indian Accounting Standards 1376 views 7 replies

can we set off unabsorbed dep agAINST SALARY? SITE ANY CASE LAW IF POSSOIBLE?

Replies (7)

 

The question of adjusting any loss with head of income 'salary' will arise with respect to loss from any other head only . Unabsorbed depreciation is not a head in itself . Therefore, adjusting unabsorbed depreciation ( which is not a Head ) with another head ´Salary´ will be without any basis of principal of aggregation of income and shall be defeating the income tax law itself .

 

 

Case Law :-  decision of Mumbai Tribunal Chandrakumar v ACIT 189 TTJ 489 dt 20 November 2009

I think salary income doesnot setoff aganist any loss except loss from house property

YES, we can take set off unabsorbed depreciation against SALARY INCOME...

This is exceptional case... This is governed by Section 32 and not by 71 and 72

refer link for more clarification

/experts/unabsorbed-depreciation-856740.asp#.T-mw1xf5DTU

also see attached copy ....

 

Regards,

Siddharth Bumb

sidbumbhelp @ gmail.com

WWW.SIDDHARTHBUMB.BLOGSPOT.COM

@ Disha can yu elaborate to clarify ?

IN READY RECNOR IT HAS BEEN STATED SET OFF NOT ALLOWED AFTER AY 05-06.. PLZ STATE CASE LAW.AFTER AY 05-06

STILL NOT CLEAR ABOUY SET OFF .. KOI TO PAKKA SABUT DE DO

Unabsorbed depreciation of previous years can be set off against salary income for unlimited period of time. This is an exceptional case.


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