Deffered tax liability and deffered tax assets

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Querist : Anonymous

Querist : Anonymous (Querist)

23 December 2014 How to calculte deffered tax liability and deffered tax assets????? plese kindly explain its urgent

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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23 December 2014 https://www.caclubindia.com/articles/meaning-of-deferred-tax-liability-asset-in-simple-words-13385.asp#.VJkvusDJA

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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24 December 2014 In simple words it created only for timing difference,certain items under income tax for which tax benefit spared over the period of time or gets immediately.

For example under section 35AD, capital expenditure can be claimed in same year under income tax act, but under Companies Act these expenditures needs to capitalized on which depreciation has to claimed.

By claiming same expenditure under income tax in same, we are shifting our tax liability for future. Whereas under companies act only depreciation has been claimed, to compensating these timing difference we are creating Deferred Tax liability.

The logic is simple IF WE ARE SHIFTING TAX LIABILITY FOR THE FUTURE DTL WILL BE CREATED, WHEREAS ON OTHER HANDS IF WE PAYING TAX FOR FUTURE LIABILITY DTA WILL BE CREATED.

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