Setoff and carry forward of unabsorbed Depreciation - Section 32(2)

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..... of Unabsorbed Depreciation Depreciation to the extent not set off shall be carried forward to the next year and set off against the income under any head. Notes: Depreciation shall be allowed to be carried forward even if business has been discontinued. The unabsorbed depreciation can be carried forward indefinitely. Priority of set-off i. Current Year Depreciation ii. Brought forward Business Los .....

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..... ded by LLP. Conditions of set-off of unabsorbed Depreciation: Depreciation has to be first deducted from the income chargeable to tax under the head Profit and loss of business and profession . If the depreciation is not fully adjusted with such income chargeable to tax in the current period, then the remaining unabsorbed portion will be carried off to the next year and would be deemed as the part .....

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