Deffered tax assets and liabilities

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 September 2014 whether Deffered tax assets and Liabilities will arises only in the case of company and when Deffered tax Liability and deffered tax assets called.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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16 September 2014 not necessary. DTL and DTA will arise as and when there is a difference between accounting treatment by assesee and the corresponding tax treatment. it can happen even if you are an individual businessman.

Querist : Anonymous

Querist : Anonymous (Querist)

16 September 2014 sir
but company maintain two type of depreciation as per company act and as per income tax act and other than company maintain depreciation as per income tax only then how we calculate time difference depreciation.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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16 September 2014 an individual can also follow different depreciation rates right? further, DTL/DTA arise on account various other differences in accounting treatment.

Querist : Anonymous

Querist : Anonymous (Querist)

16 September 2014 sir my question is that other than company can follow depreciation as per income tax only then how we can calculate DTA and DTL.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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16 September 2014 that is what I am saying. it is not necessary that non-company assessees maintain depreciation as per income-tax act. if they do, then there wont be any deferred tax asset or liability arising from depreciation. however, there can be other reasons for DTL and DTA too.