Unabsorbed depreciation

 

Ques : For how may years unabsorbed depreciation can be carried forward to set off ?

Plz check this following link of income tax department's site and resolve my querry that wheteher it can carried forward for 8 years or indefinite period????

https://law.incometaxindia.gov.in/DIT/File_opener.aspx?page=ITAC&schT=&csId=2caa131b-51fa-4bd2-9814-77d01037945e&rdb=sec&yr=e5be6bdb-1fc4-42d6-ac7b-34a44fd65485&sec=32&sch=&title=Taxmann%20-%20Direct%20Tax%20Laws

(P.S. - Go to this page and click on point 20 and check)

Replies (5)

Hi,

Unabsorbed Depreciation can  be carried forward indefinitely to any number of years. It can also be set off against any head of Income except salary.

It is 100% confirmed.

The wordings of that section clearly says that if there is no sufficient profit, then the amount which cannot be set off can be added to next years Depreciation allowance and if that also cannot be set off, then it is carried forward to subsequent years.

 

Originally posted by : Vignesh Killur

Hi,

Unabsorbed Depreciation can  be carried forward indefinitely to any number of years. It can also be set off against any head of Income except salary.

It is 100% confirmed.

The wordings of that section clearly says that if there is no sufficient profit, then the amount which cannot be set off can be added to next years Depreciation allowance and if that also cannot be set off, then it is carried forward to subsequent years.

 

agree with the above and he is 100% correct

 

Hi Sargun, I clicked on point 20 & read it. It actually explains the position before 1.4.2002. As per the present law, unabsorbed depreciation can be carried forward indefinitely(as already explained by Vignesh). Pls read clause 2 of section 32 from the same link before clicking on point 20..that is the clause relevant now.  

Yes... Unabsorbed Dep. can be claimed for infinite period.

Thanks

Mihir Doshi

thnx to all....n yes it has been clarifed as said by all of u and Jithin ji its true taht its the position before 1.04.2002...Thnx to all for help

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