Deferred tax asset
This query is : Resolved
Guest
Guest
(Querist)
11 August 2012
What is the treatment of Deferred Tax Asset in coming years following its creation and what is the difference on income if deferred tax is not created on Business Loss and Unabsorbed depreciation?
12 August 2012
Deferred tax asset has to be reversed in the future peruiod as and when the unabsorbed losses are set off in income tax computation.
If DT is not created in the year in the first year, the effective tax rate would be high in that year.
Subsequently when the carryforward loss is actually offset in future years, the effective tax rate will be very low in the year of set off.
Thus Def tax asset has to be created when there is vitual certainity of reversal and avoid unwarranted volatility in effctive tax rates.
If DT is not created in the year in the first year, the effective tax rate would be high in that year.
Subsequently when the carryforward loss is actually offset in future years, the effective tax rate will be very low in the year of set off.
Thus Def tax asset has to be created when there is vitual certainity of reversal and avoid unwarranted volatility in effctive tax rates.
Message likes :
1 times
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
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Unregistered suppliers utility
- ITDS U/S.194T of Firm
- Difference between Date of Payment and Date of Deduction?
- GST Rate for Catering Services
- FCRA 6 E- Intimation
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- ADDITION OF CHALLAN IN TDS RETURN FORM 140
- Non-Compliance documents have not been submitted by the contractors debited
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
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
