Clarification Regarding Deferred Tax Asset/Liability
This query is : Resolved
CA. Naveen Jain
(Querist)
20 July 2011
Pls clarify two Points regarding DTA/DTL
1. A newly formed company in its first year financial has no sale/income, then DTA/DTL will applicable.
2. If a company has net loss then DTA/DTL will applicable
1. A newly formed company in its first year financial has no sale/income, then DTA/DTL will applicable.
2. If a company has net loss then DTA/DTL will applicable
20 July 2011
1. Since there is no business loss as per IT Act,1961 no need to book DTA. However,if there is depreciation allowance,to that extent DTA/DTL has to be recognized.
2. If company is 'virtually certain' that sufficient profit will arise in the coming year, DTA/DTL should be booked, otherwise no need.
2. If company is 'virtually certain' that sufficient profit will arise in the coming year, DTA/DTL should be booked, otherwise no need.
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
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- 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
- 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?
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
