Deffer tax
This query is : Resolved
Manoj kashera
(Querist)
20 October 2011
What is Deffered Tax?
What is Deffered Tax Assets & Liabilities?
What is Deffered Tax Assets & Liabilities?
20 October 2011
Deferred tax is governedby AS -22.
Deferred tax is the timing difference between Taxable Income and Accounting Income.
Deferred Tax Asset : Where is taxable income is more than accounting income [ accounting income means profit as shown in P&L], the Deferred Tax Arises.
Deferred Tax Liabilities : Where Accounting income is greater than Taxable income then Deferred Tax Liability will arise.
Example :
Profit as per profit & Loss Account 100000
Dep as per Companies act 25000
Allowable Dep as per Income Tax act 40000
Timing difference is 40-25 15000
Deferred Tax Liability [ 30% *15000] 4500
Deferred tax is the timing difference between Taxable Income and Accounting Income.
Deferred Tax Asset : Where is taxable income is more than accounting income [ accounting income means profit as shown in P&L], the Deferred Tax Arises.
Deferred Tax Liabilities : Where Accounting income is greater than Taxable income then Deferred Tax Liability will arise.
Example :
Profit as per profit & Loss Account 100000
Dep as per Companies act 25000
Allowable Dep as per Income Tax act 40000
Timing difference is 40-25 15000
Deferred Tax Liability [ 30% *15000] 4500
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Manoj kashera
(Querist)
29 December 2011
SIR PLZ MAKE IT MORE SIMPLE SINCE IT BUILD MY CONCEPT
Dhirajlal Rambhia
(Expert)
14 July 2023
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