A query

Deferred Tax Liability means postponing the liability in point of time of paying tax. In other words, it is certain that you have to pay tax liability but not now after some time.

- Ruben Balooni

hey krina..pls refer to accounting standard 22 for the same...it will help you to understand it more clearly.

Deferred Tax Liability (DTL) is an accounting gimmick.

It is a created when u get advantage in taxation by way of reduction of tax liability but the same is not present in accounts.

For example,

If u are eligible for 100% depreciation in taxation on scientific research assets but in accounts u claim say 25.89%. So u get higher depreciation in taxation but u hav not claimed that depn in accounts.

Next time when u again claim depn. in accounts, it wud be disallowed in taxation. Therefore it creates a tax liability in future years. So, u create DTL.

Thanks alot for the to all Reply ..!