Urgent Please

Deferred tax is not under the provisions of income tax. Deferred tax is just a provision to be made in books as per Accounting Standard 22 - Accounting for Deferred Tax. You never calculate tax on the profit as shown in profit and loss account. Tax is computed by making adjustments to the profit in the books to arrive at taxable profit. Tax is calculated at such amounts. There are no consequences for non-compliance with deferred tax under Income Tax Act. The consequences are that the picture as shown will not be true and fair keeping Accounting Standards in view. In this case, if there is no provision for deferred tax, then the auditor may disqualify the report.