LOSS MAKING COMPANY AND TAX DICLOSURE REQUIREMENTS??????????????
This query is : Resolved
29 September 2007
Hi,
As per companies act is it mandatory to show the income tax saved in case of a company undergoing loss????????? If so please do let me know as to how it has to be disclosed???? Further is there any provision which makes this disclosure a mandatory one????
As per companies act is it mandatory to show the income tax saved in case of a company undergoing loss????????? If so please do let me know as to how it has to be disclosed???? Further is there any provision which makes this disclosure a mandatory one????
30 September 2007
As per auditors report it will be shown as "accumulated losses and loss during the year"
As per AS 22 deferred tax working - DTA should be shown by way of Notes. PRUDENCE basis the same need not be considered in the financial statements.
In profit and loss adjustment account how much is the Depreciation loss and business loss as per Income tax act and Companies act respectively should be given by way of note so that it will be useful to set off in subsequent year.
As per AS 22 deferred tax working - DTA should be shown by way of Notes. PRUDENCE basis the same need not be considered in the financial statements.
In profit and loss adjustment account how much is the Depreciation loss and business loss as per Income tax act and Companies act respectively should be given by way of note so that it will be useful to set off in subsequent year.
30 September 2007
Ok but is it necessary to show the income tax savings or not??????
30 September 2007
I could not understand your question.
01 October 2007
ok..i wnt to know if the tax saved as a result of loss incurred has to be disclosed or not????
11 November 2007
AS 22 prescribes DTA and DTL. Deferred Tax Asset can be created only if you are virtually certain of making profits in the future. Thus you can create DTA if your company is virtually certain that it will make profits in the future.
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
- Tax on Deemed Capital Gain
- Type of Capital Gain
- Exiting partner in partnership firm in gst portal
- Loss of interest in PF transfer from EPFO to Trust
- Banking Related Issue
- IT returns for fresh job holders
- Grand in aid
- ASMT-10 received from A O
- Taxability of credit in canara bank ET & T section (NRO)
- Traces submitting correction statement error
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
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
