Accounting path
MPR Sanjay Kumar (3145 Points)
10 May 2022
what is mean by deferred tax liability and deferred tax assets? give some clear explanation
5 Replies
Eswar Reddy S
(CFO- at NHTF)
(58275 Points)
Replied 10 May 2022
Deferred Tax Araise due to time difference between accounting income and Taxable Income.
Example depreciation rates are different in companies act and income tax act .
Few expenses in income tax allowed only on payment of Tds where as in accounts expenses without tds also considered
Example depreciation rates are different in companies act and income tax act .
Few expenses in income tax allowed only on payment of Tds where as in accounts expenses without tds also considered
Eswar Reddy S
(CFO- at NHTF)
(58275 Points)
Replied 10 May 2022
Time differences which reduces the taxable income can cause differed tax asset.
Timing difference*31.2% = Differed Tax
Timing difference*31.2% = Differed Tax
MPR Sanjay Kumar
(3145 Points)
Replied 10 May 2022
Deferred tax liability is a payable in future and deferred tax assets is a advance paying for future credits ? IAM I correct
Eswar Reddy S
(CFO- at NHTF)
(58275 Points)
Replied 10 May 2022
Balance sheet may reflect a deferred tax asset if it has prepaid its taxes.
So tax will be less in the future to this extent
So tax will be less in the future to this extent
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