Deferred Tax Provision

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 April 2010 During a year Normal provison for income tax is made in books for the amt of tax liability on accounting profit. At the same time either deferred tax asset is created or liability is created. for difference between tax liability on taxable income and tax liability as per accounting profit.

In next year when a payment of income tax is made what entries will be passed.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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13 April 2010 Provision for Income tax a/c Dr xxxx
To bank/cash a/c xxxx

No need to be pass entries for deferred tax since there is no payment involved.

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