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Deffrered tax

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Querist : Anonymous

Querist : Anonymous (Querist)

10 August 2010 I have loss as per both a/cs and tax.Tax loss including tax depreciation of Rs.397670 is, Rs.876804/-.I want to know that on which amount i have to create deffred tax.I am confused as i created deffred tax liability on depreciation defference between co.s act & IT act.kindly tell in situation of loss as per both a/c and tax, on which amt i sholud create deffered tax.

Aditya Maheshwari

Aditya Maheshwari (Expert)

10 August 2010 Full amount of loss including depreciation loss deferred tax asset should be made.

For timing difference also deferred tax liability is also made.

Both are made for different purpose and hence no problem in making them.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

10 August 2010 Deferred tax asset has to be booked on loss as well as depreciation computed as per tax laws. However, DTA on these two items will be recognized if and only if there is virtual certainty that sufficient taxable income would be available in future, against which such DTA can be realized.

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