Can unabsorbed depreciation set off against salary?
unabsorbed depreciation) cannot be set off against income chargeable to tax under the head “Salaries”.
How is unabsorbed depreciation set off?
Unabsorbed depreciation in case of belated or delayed return Set-off and carry forward of depreciation is governed by section 32(2) and not by section 80. Therefore, unabsorbed depreciation can be carried forward and set off even if the return of income is filed after the time limit prescribed u/s 139(1).
What is the time limit for carry forward of unabsorbed depreciation under Income Tax Act 1961?
This amendment was brought in to curtail the inter head set off, restrict the carry forward of unabsorbed depreciation to a period of 8 years and lay down a condition that the business should be in existence for the unabsorbed depreciation to be carried forward and set off.
Can unabsorbed depreciation be carried forward in case of belated return?
Unabsorbed depreciation can be Carried Forward even if ITR Not filed within Due date.
Where is unabsorbed depreciation in ITR?
ONLY if the unabsorbed Depreciation is entered in CFL, then it will be allowed in Sch BFLA calculation. Enter details u/s 80G in Sch 80G (where the Schedule is available in the return- ITR 4, 5 and 6) along with correct totals, before claiming the total in Chapter VI- A.
What is unabsorbed depreciation example?
03 January 2012 Unabsorbed depreciation means when the business profit is not sufficient to cover even depreciation expense. Eg 1. Business profit before depreciation Rs. 100 lakhs.
What is unabsorbed depreciation?
Unabsorbed depreciation is the excess amount of unaccounted depreciation that cannot be adjusted in the current year due to lack of profits in the profit and loss account. This unabsorbed amount can be set-off against other heads of income and is carried forward for adjustments in the forthcoming years.
What is the time limit to set off and carry forward of unabsorbed depreciation?
8 assessment years
“30.1 Under the existing provisions of section 32 of the Income-tax Act, carry forward and set-off of unabsorbed depreciation is allowed for 8 assessment years.
What is unabsorbed depreciation in how many years it can be written off?
“30.1 Under the existing provisions of section 32 of the Income-tax Act, carry forward and set-off of unabsorbed depreciation is allowed for 8 assessment years.
Can unabsorbed depreciation be carried over to the next year?
The unabsorbed depreciation can be deducted from income under any other head (except with Casual income and Salaries) of the same assessment year. If depreciation still remains unabsorbed, it can be carried forward for indefinite period and can be set off against any income (except with Casual income and Salaries) of the assessee.
Can depreciation be set off against income?
If depreciation still remains unabsorbed, it can be carried forward for indefinite period and can be set off against any income (except with Casual income and Salaries) of the assessee. 1. It is not necessary that the same business should be continued. 2. For set-off purpose following order is to be followed: 3.
Is the tribunal right in directing the Assessing Officer to recompute unabsorbed depreciation?
Whether on the facts and circumstances of the case, the Tribunal was right in directing the Assessing Officer to recompute the income after allowing set off of unabsorbed depreciation from income from other sources, especially, when carry forward losses remained? 2.
Can depreciation be carried forward for indefinite period?
If depreciation still remains unabsorbed, it can be carried forward for indefinite period and can be set off against any income (except with Casual income and Salaries) of the assessee. 1. It is not necessary that the same business should be continued.
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