Unabsorbed depreciation setoff against LTCG

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Student
72 Points Posted on 11 September 2020
co have huge amount of unabsorbed depreciation.
now co sell Land and have Long term Capital Gains on same.
can we adjust same with UAD?
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On 11 September 2020 at 16:59 Report
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This discussion clarifies that unabsorbed depreciation cannot be directly set off against Long Term Capital Gains (LTCG). Instead, unabsorbed depreciation is added to the current year's depreciation, potentially creating a loss under the head Profits and Gains from Business or Profession (PGBP). This PGBP loss can then be used to offset LTCG.

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Team Lead
7558 Points Posted on 11 September 2020
No it can't be setoff against ltcg
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On 11 September 2020 at 20:59
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CHARTERED ACCOUNTANT
1190 Points Posted on 12 September 2020

UAD  becomes a part of next year current depreciation u/s 32(2). After adding UAD in current depreciation for the year results in loss under the head PGBP then that loss under PGBP may be set off with LTCG 

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On 12 September 2020 at 00:05

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