What is deffered tax liability
This query is : Resolved
24 October 2011
Dear Sir Please tell me what is deferred tax liability for the below mentioned figures for A.Y 2010-11
Profit as per P&L A/c - 41875507
Add Depreciation
Donations etc... - 14899002
Less Depreciation
As per I T - 9413800
Taxable Income - 47360709
Profit as per P&L A/c - 41875507
Add Depreciation
Donations etc... - 14899002
Less Depreciation
As per I T - 9413800
Taxable Income - 47360709
25 October 2011
Deferred tax asset/liability will arise on account of difference in the depreciation.
P&L method -
If depreciation as per books higher than tax - DTA
If depreciation as per books lower than tax - DTL
Balance sheet method -
If WDV as per books is higher than tax - DTL
If WDV as per books is lower than tax -DTA
Donations being disallowances/partial disallowances are permenant differences and will not result in deffered tax.
P&L method -
If depreciation as per books higher than tax - DTA
If depreciation as per books lower than tax - DTL
Balance sheet method -
If WDV as per books is higher than tax - DTL
If WDV as per books is lower than tax -DTA
Donations being disallowances/partial disallowances are permenant differences and will not result in deffered tax.
30 October 2011
My dear friend u have to separately mention the amount of depreciation and donations. It seems that under IT Act, except depreciation, nothing is deductible (Donations etc.). so these will be considered as permanent differences and AS 22 will not be applicable on it.
If the dep. as per A/cs is less than what is allowed under IT Act, create deferred tax liability on the difference applying tax rate for next year.On the contrary, if dep as per A/cs is more than IT Act, create deferred tax asset.
If u have any further doubt, revert back to me.
Regards, CA Shakuntala Chhangani
If the dep. as per A/cs is less than what is allowed under IT Act, create deferred tax liability on the difference applying tax rate for next year.On the contrary, if dep as per A/cs is more than IT Act, create deferred tax asset.
If u have any further doubt, revert back to me.
Regards, CA Shakuntala Chhangani
30 October 2011
My dear friend u have to separately mention the amount of depreciation and donations. It seems that under IT Act, except depreciation, nothing is deductible (Donations etc.). so these will be considered as permanent differences and AS 22 will not be applicable on it.
If the dep. as per A/cs is less than what is allowed under IT Act, create deferred tax liability on the difference applying tax rate for next year.On the contrary, if dep as per A/cs is more than IT Act, create deferred tax asset.
If u have any further doubt, revert back to me.
Regards, CA Shakuntala Chhangani
If the dep. as per A/cs is less than what is allowed under IT Act, create deferred tax liability on the difference applying tax rate for next year.On the contrary, if dep as per A/cs is more than IT Act, create deferred tax asset.
If u have any further doubt, revert back to me.
Regards, CA Shakuntala Chhangani
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
- CG Tax On residential property
- Post Office RD Interest
- Applicable TDS for Purchase of Flat from NRI
- Eway bill for machinery reparing
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Under construction property in ITR
- Gift of mutual fund units to daughter
- Upload Level ValidationITR3Category of Defect B/D
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- Reporting of STCG on Property in ITR
- ITR-4 vs ITR 5
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
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
