Balance sheet approach of calculating deferred tax asset/ lb
This query is : Resolved
Nikita Kulkarni
(Querist)
08 September 2016
Can somebody give an easy example of balance sheet approach of calculating deferred tax asset/ liability ?
For example,
WDV as per BOOKS : 1085291.09
WDV as per Income Tax Act : 655305
which amount will appear where in balance sheet? why is there difference when we calculate Deferred tax asset/liability by comparing depreciation as per books and depreciation as per Income Tax Act?
For example,
WDV as per BOOKS : 1085291.09
WDV as per Income Tax Act : 655305
which amount will appear where in balance sheet? why is there difference when we calculate Deferred tax asset/liability by comparing depreciation as per books and depreciation as per Income Tax Act?
Vivek Hebbar
(Expert)
08 September 2016
You need to read and understand AS-22 for the concept of deferred tax. In the given example, you need to apply the current corporate tax rate on the difference of the two figures. The resultant amount will be Deferred Tax Liability.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Accounting treatment of AMC alongwith the purchase of Laptop
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Issuing of delivery challan by seller of goods
- Transfer of Physical Stock Between Two Proprietorship Concerns
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Taxation of crypto futures in India Fy 2026- 2027
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- EPF ECR NEW RULES Sep 17th 2026
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
