Differed tax
This query is : Resolved
26 October 2012
can any one say regarding differed tax?
how DTA&DTL created? why it is created
how DTA&DTL created? why it is created
26 October 2012
Please read the article at below link:-
https://www.caclubindia.com/experts/capital-gains-rural-agricultural-land-1130964.asp
https://www.caclubindia.com/experts/capital-gains-rural-agricultural-land-1130964.asp
26 October 2012
Deferred tax is the difference between accounting income and tax income.
This can be explained with small Ex:
Profit after book dep of Rs. 20 is Rs. 100
Income tax Dep is Rs. 50, then ur taxable income is Rs. 100 + Rs. 20 - Rs. 50 = Rs. 70.
Hence, eventhough ur income is Rs. 100 as per books, u r paying tax on Rs. 70 only.
On the difference of Rs. 30, u will be paying tax in future. Since this is a liability for the year, u will be creating a deferred tax liability on Rs. 30 for current year.
This can be explained with small Ex:
Profit after book dep of Rs. 20 is Rs. 100
Income tax Dep is Rs. 50, then ur taxable income is Rs. 100 + Rs. 20 - Rs. 50 = Rs. 70.
Hence, eventhough ur income is Rs. 100 as per books, u r paying tax on Rs. 70 only.
On the difference of Rs. 30, u will be paying tax in future. Since this is a liability for the year, u will be creating a deferred tax liability on Rs. 30 for current year.
26 October 2012
https://www.caclubindia.com/articles/deferred-tax-entries-15482.asp
14 November 2012
thanks for ur reply with a smart example kishore sir
26 November 2012
You are welcome santosh.
26 November 2012
sir,
please explain me regarding c-form,with an example sir i am little confused regarding that topic
please explain me regarding c-form,with an example sir i am little confused regarding that topic
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