GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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4 Years
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6 Years
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8 Years
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Indefinitely
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Detailed explanation-1: -The unabsorbed depreciation can be carried forward indefinitely. The conditions of 4 years/ 8 years are not applicable in the case of unabsorbed depreciation. Depreciation shall be carried forward even if the business or profession has been discontinued.
Detailed explanation-2: -9) However, unabsorbed loss shall be allowed to be carried forward for set-off in subsequent years as per the existing provisions of section 71B. (Provisions relating to carry forward of loss from house property is discussed later.) under the Income-tax Law for carry forward of loss under different heads of income.
Detailed explanation-3: -Unabsorbed depreciation can be carried forward for an indefinite period and can be set off against any other income (other than salary).
Detailed explanation-4: -Unabsorbed depreciation can also be carried forward even if the return of loss is submitted after the due date, as it is not covered under Chapter VI of set off or carry forward of losses but covered under section 32(2).