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A query

krina (student) (1263 Points)

29 November 2012

Can someone please tell me the meaning of Deffered tax Liablity Meaning ..

thanks..!

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CA Ruben Balooni (Professionalism ™) (1324 Points)
Replied 30 November 2012

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

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Vandana J Doshi (Practising Company Secretary) (12562 Points)
Replied 30 November 2012

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

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Vineet Jaiswal (CA) (141 Points)
Replied 30 November 2012

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.

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