Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Deferred Tax

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Query Ask a Query

Raghavendra K S

Raghavendra K S (Querist)

19 June 2008 Please give brief information about deferred Tax & about its calculation.

CA Vivek Jain

CA Vivek Jain (Expert)

19 June 2008 https://onlineservices.tin.nsdl.com/etaxnew/tdsnontds.jsp

taxindiaconnect

taxindiaconnect (Expert)

02 May 2009 Deferred tax liability / assets is a method for recognising any future tax liability or assets arising due to any temporary differences arising between books and tax books. A very simple and most prevalent example may be a temporary difference in tax liability as per books and tax is depreciation rates due to which the tax liability of the current year may be low due to higher charge of dep. as per IT Act. However this may reverse in future and result in a higher tax liability. By way of deferred tax an the this future liability is recognised in books in current year. Deferred tax assets arises where an expenditure is disallowed in computation and is charged off in books in the year one itself. The deferred tax assets is recognised only if there is a virtual certainty of availing such assets in near future other wise ignored.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now