CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA

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This discussion addresses the calculation of deferred tax, specifically whether the closing balance should be a Deferred Tax Liability (DTL) or Deferred Tax Asset (DTA). The original calculation method presented was incorrect as it improperly deducted the closing temporary difference. The correct approach involves either directly computing the closing DTL or adjusting based on the movement in temporary differences between the Companies Act and IT Act WDV.

Kaushik Roy

Kaushik Roy (Querist)

29 August 2026 Opening valance of DTL 195731.00. current year closing wdv as per companies act 34,95,400.00 and IT act 2771830.00. Whatwill be the closing figure ? will it be DTL or DTA. someone calculated closing DTL as 7603.00 (195731- (3495400.00 -2771830.00)*26%). Is it corret method? pl. help with calculation.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

29 August 2026 The queried method is wrong because it improperly deducts the closing temporary difference from the opening liability instead of computing the closing DTL directly or adjusting via the movement in temporary differences.

Kaushik Roy

Kaushik Roy (Querist)

30 August 2026 Thanks for your reply.Can you please suggest what will be proper calculation?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

03 November 2026 The correct closing balance is a Deferred Tax Liability (DTL) of ₹188,128.20 (computed as 26% of the closing WDV difference of ₹7,23,570.00), resulting in a deferred tax reversal of ₹7,602.80 for the year.

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