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Unabsorbed depreciation

Akshit (Article) (35 Points)

24 August 2012

I have understood the concept of unabsorbed depreciation...but I wanted to know if its possible to have business loss without having unabsorbed depreciation ??

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3 Replies

Vinod Lakhera (CA in service) (85 Points)
Replied 24 August 2012

some of the cases are: 1. assessee having no f.assets. 2. have f.assets but wdv as per i.tax act is nil. 3. assets used for research cases 100% claim in the frst yr... etc these r d cases where dere will be loss....

Akshit (Article) (35 Points)
Replied 24 August 2012

Thanks.. Also..please tell me the rules for set off of unabsorbed depreciation and business loss brought forward from previous years... Is it neccessary to set off the business loss first or it is neccessary to set off the unabsorbed depn. first? Or can we set off anythng first as per our wish?

Vinod Lakhera (CA in service) (85 Points)
Replied 10 September 2012

dere is no limit prescribed ( means v can c/f it for any no. of yrs) however for busi. loss dere is t/l of 4 or 8 yrs... so v always setoff the business loss and den unabsrbd loss.. ITax Act also provides it.