Unabsorbed depreciation

Unabsorbe depreciation can be adjusted from any income and in any year. If you have a huge profit in the current year you can adjust the whole unabsorbed depreciation

Thanx for suggestion...but what will be the accounting entity since we have already charge the unabsorbed depreciation in the earlier years accounts.

There will not be any jornal entry  for unabsorbed depriciation. Unabsorbed depriciation is a concept in Income Tax , it has nothing to do with Accounts.

Huge depriciation in a financial year will result into losses, as such in next financial year when there are large profits it will set off last years losses an will result into profits.

I agree with Ashish

Satyen