Section 34A of ITA, 1961 : Section 34A: Restriction On Unabsorbed Depreciation And Unabsorbed Investment Allowance For Limited Period In Case Of Certain Domestic Companies

ITA, 1961

JavaScript did not load properly

Some content might be missing or broken. Please try disabling content blockers or use a different browser like Chrome, Safari or Firefox.

Explanation using Example

Imagine XYZ Pvt. Ltd., a domestic company, has been operating a manufacturing business. For the financial year 1991-92, the company had an unabsorbed depreciation allowance of INR 300,000 and an unabsorbed investment allowance of INR 200,000 due to insufficient profits. According to Section 34A of the Income-tax Act, 1961, when XYZ Pvt. Ltd. calculates its profits for the financial year 1992-93, it can only deduct two-thirds of these allowances from its profits.

Therefore, XYZ Pvt. Ltd. can deduct INR 200,000 (two-thirds of INR 300,000) for depreciation and INR 133,333 (t...

Login to access all pages and read more content.

To disable ads and read rest of the premium content, subscribe to KanoonGPT Pro.

🚀 Special Offer! Enjoy 1 Year of Ad-Free Browsing with any subscription.
KanoonGPT is now faster and smarter, powered by upgraded servers.
Subscribe today and unlock all new features!
Update: Discover how KanoonGPT revolutionizes legal research! Watch our demo video on the homepage to see how you can chat with various legal sections using our innovative hybrid AI search. Enjoy free unlimited AI access for a limited time!
Update: Page bookmarking and open in new tab is now supported! Simply use your browser's bookmark manager to save this page for quick access later.
Update: We're building AI tools for the Indian Law community. Help shape the future by filling out this quick form for a chance to get a free 1-year usage of the requested tool.

Download Digital Bare Acts on mobile or tablet with "Kanoon Library" app

Kanoon Library Android App - Play Store LinkKanoon Library iOS App - App Store Link