Accounting for Taxes on Income

Jayant Shaligram (Service) (146 Points)

19 June 2007  

I have just come across the message and its replies form experts about creating defered asset or deferred liability in stark contrast.

One expert has advised on creating a DTA as follows :There's this simple funda... if the profit as per books is more ie accounting profit is more than the IT profit then create DTA otherwise create DTL.. apply the same concept for loss.. and may be i'll help you out with the excel sheet very soon. hope this clears ur concept...By NIKITA posted on06/11/2007

The other expert has advised on creating a DTL as follows :DTL if Book profit > Taxable profit & vice versa.

Could any one please clarify the matter.