Deferred tax

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Prachi (Querist)
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09 August 2012 Hi Experts,

can anyone explain me in simple terms what is deferred tax asset and liability and why should be show that in balance sheet.

many thanks
Prachi

Amol S Joglekar

Amol S Joglekar (Expert)
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09 August 2012 please refer to article presented by Vignesh on this site on 21 mar 2012

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CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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09 August 2012 Please Read With AS-22, You Will Get Benefited.
In Short -
Difference Between Accouting Income & Taxation Income - That We are Going to Pay/Receive from Income Tax Department is Liability/Asset Respectively.

CA Navin Jain

CA Navin Jain (Expert)
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09 August 2012 In simple words, if INCOME TAX IS MORE THAN OF TAX CALCULATING ON BOOK PROFIT THEN ITS CALLED DEFERRED ASSETS ABD VISE A VERSHA.

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CA BHARATH KUMAR

CA BHARATH KUMAR (Expert)
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09 August 2012 CA navin jain is correct . Deferred tax means timing diference between Book Income and Taxable income in Depreciation

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CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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10 August 2012 The Word "Book Profit" is Not to Be Used...
Here Difference Between Accounting Income & IT Income.
Book Profit Word Used for sec 115JB Only in Income Tax Act.
Book Profit is Defined in Sec 115JB.
But in AS-22, No Where Word Book Profit is Used.

Regards,
CA Ayush Agrawal

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