Guys and Girls,
Last week's question was too too simple i think..
Lalit answered correctly (of course, when was he wrong?)..
Sarayu was in two minds i think ( A shock to me!! She used to be clear in her ideas!!)..
So, Lalit doesn't need introduction.. World famous personality!! A great guy to be with.. He is my best of best friends.. Have to learn a lot from him.. (Hardwork, Sincerity, Talent, Perfection, Punctuality, Honesty, Discipline, Loyalty etc...)
This week's question is,
2001-02 Business Loss of Rs. 2 Lakhs..
2002-03 Business loss of Rs. 5 Lakhs..
2002-03 Unabsorbed Depreciation Rs. 3.5 Lakhs..
2003-04 Profit of Rs. 7 Lakhs..
In which order the set-off should take place?
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Profit 7.00
ReplyDelete(-)Unabsorbed Depreciation (3.50)
(-)Business Loss 2001-02 (2.00)
(-)Business Loss 2002-03 (5.00)
(3.50)
Hope i'm right!!
S.Aishwarya
hmmmmmmm... thanks for the big intro... hmmmm back to the question. my personal view is that the yrs are given just to confuse it up.. and if its 02 03 or 2010 also its gonna be the same ans... so my ans to it is...
ReplyDeleteProfit 7lacs
first to be setoff against
Dep of 3.5 (3.5)
balance 3.5
Business loss 01-02 2.0
balance 1.5
and so now out of 5 only 1.5
can be set off. 1.5
so remaining to be c/f
The answer goes this way.
ReplyDeleteProfit - Rs. 7 lacs
Less:Busi. Loss 01-02 - Rs. 2 lacs
Busi. Loss 02-03 - Rs. 5 lacs
Hence, Taxable Income - NIL.
Carried Fwd Unabsorbed Dep Rs. 3.5 lacs
of FY 02-03.
Information:
1.Unabsorbed Dep B/fd can be set off only after setting off the B/fd Bus.Loss.
2.W.e.f AY 00-01, loss of a discontinued business/profession an also be C/fd.
3.Unabsorbed dep of a discontinued Bus can be C/fd.However if the unabsorbed dep relates to AY 1997-98 to 2001-02 then the same can't be C/fd unless the business is continued.
- Sarayu.
source: T.G.Suresh Sir's buk