Meaning & treatment
This query is : Resolved
deepak gairola
(Querist)
13 April 2012
good afternoon experts
plz tell me what is deferred tax asset & deferred tax liability.what is the treatment of defered tax assets & deferred tax liabilities.
plz tell me what is deferred tax asset & deferred tax liability.what is the treatment of defered tax assets & deferred tax liabilities.
CA Kishore Tallam
(Expert)
14 April 2012
Deferred tax is the tax effect of timing differences.
Treatment of all expenses / incomes is not same as per accounts and income tax.
Suppose, the company has not paid amounts falling u/s 43B before filing return, the same will be disallowed in income tax. Hence, u have paid excess tax on account of this when compared to books. So u will create a deferred tax asset for it. Reverse way is deferred tax liability.
Treatment of all expenses / incomes is not same as per accounts and income tax.
Suppose, the company has not paid amounts falling u/s 43B before filing return, the same will be disallowed in income tax. Hence, u have paid excess tax on account of this when compared to books. So u will create a deferred tax asset for it. Reverse way is deferred tax liability.
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