Deferred tax

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Querist : Anonymous

Querist : Anonymous (Querist)

19 June 2013 pl. explain me deferred tax.

do we pay deferred tax amount to bank
pl. explain

Reg

CA UMESH DULAL

CA UMESH DULAL (Expert)

19 June 2013 Deferred tax arise due to timing difference (such as difference of depreciation rate under IT Act & Companies Act) or due to permanent difference (such as expenses allowed in companies act but not allowed in IT Act). For more, plz go through AS-22.

It is just an accounting entry you need not deposit Deferred tax to the account of central govt.

Rupesh Jain

Rupesh Jain (Expert)

19 June 2013 deffered tax liability or assets is diff. of exp.claim in income tax and in our books

for expample some exp calim in books
but some part of exp. may disallowd in income tax . then tax liability is diff under income tax act and in books.

secondly depreciation method and rate of depreciatin in also diff under both act.

deffered tax liability in mandatory under law.

and it set off in future

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