How many years unabsorbed depreciation can be carried forward?
Such loss can be carried forward for four years immediately succeeding the year in which the loss is incurred. Above provisions are not applicable in case of unabsorbed depreciation of speculative business (provisions relating to unabsorbed depreciation are discussed later).
Can unabsorbed depreciation be carried forward?
Unabsorbed depreciation can be carried forward for an indefinite period and can be set off against any other income (other than salary). The unabsorbed depreciation can be carried forward even if the business related to such depreciation has been discontinued.
How many assessment years unabsorbed depreciation can be carried forward for set off?
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.
Can unabsorbed depreciation be carried forward if return is filed after due date?
Unabsorbed depreciation can be Carried Forward even if ITR Not filed within Due date.
How unabsorbed depreciation is calculated?
If in any year,profits are not sufficient to give effect to depreciation, balance is called Unabsorbed Depreciation. It can be carry forwarded to become depreciation of nest year.
EXAMPLE 2.
| Particulars | Amt |
|---|---|
| Balance Profit | 1000 |
| Less | |
| Adjust with Unabsorbed Depreciation | 3000 |
| Balance Unabsorbed Dep | -2000 |
What is unabsorbed depreciation?
Unabsorbed depreciation is the part of depreciation that the assessee fails to claim as an expense in his/her Income Tax Return due to insufficient profits during that year.