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
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst registered proprietorship firm
- TDS Challan - change of FY 2025-26 to TY 2026-27
- Price inclusive or exclusive of GST while made entry in P& L Account
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- Dep. as per companies act
- Applicability of GST on Salary Reimbursement Component
- Minimum tax payable to file Updated return
- SALARY CAN BE CAPITALIZE
- Salary from Qatar in Dollars in India
- TDS on purchase of under construction property from a reseller
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
