Regarding deferred tax asset

ABHINANDAN JAIN (CA Student) (886 Points)

28 April 2013  

B/sheet is prepared for/upto 31th march. For this, client has to compute current tax and deferred tax. As we know provision for tax (i.e. Current tax) & Def tax is computed from "statement of computation of Income"

Confusion1:  Suppose client is preparing or computing DTA amount for showing it in balance sheet for say FY 12-13. How could be a client predict that Bonus will be paid within Return filling date [i.e.within september] standing on march.As per sec 43B of I.T Act if it is paid within Return filling date, thn it will be allowed in same year. I think Same year means Same previous year i.e. FY12-13. Now supoose if the client pays the bonus amt in aug or within 30th sep, then it must be allowed for that year, but we have already prepared & finalised our accts by april /may or june for Fy-12-13 and calculated DTA disallowing bonus assuming not paid.

Question on this confusion:

q1.Whether we compute DTA amount till 31st march. In that case how do we settle bonus if paid after march accts.

q2. If DTA is computed from Statement of Computation of Income..whether same computation (which we had prepared for our accounts for calculting DTA) will be filled in ITR or it is to be changed or modified later on aftter march.

q3. For Calculating DTA in accounts, whether only PGBP income is considered or all sources of income (i.e. HP, cap gain,etc) is considered

q4. As an auditor wht to check in DTA calculation/schedule...whether audting with regard DTA is checking calculation & appying para 15,17 only, or there is something else to check in this schedule..

q5. Is there anyone who is having a list of situations where DTA can be created.otherthan sec 43 B and depreciation difference..pls give full list of temp/timming differences..having any word file or excel sheet..then pls share

q6.not able to connect theory of AS 22 with practical scenario which used to happen in offices whil prerang accounts

q7. Any other suggestion...?

thank you for clearing my confusion..