If co follow own dep method and dep as per tax are diff in this case dep adjusted.I have doubt in Balancesheet which dep deduct as per books or as per tax.
eg book profit 100
As per book dep-20,
As per Tax dep-30
Asset value 70.
In tax return Balancesheet what put
asset :70
dep : 20 or 30??
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Book profit and tax profit
Replies (4)
Book depreciation is recorded in the final statements. Then the tax depreciation is used in corporate tax calculations to find out the current tax amount as well. A differed tax consequence also arises between book and tax depreciation. Try searching ca club for articles related to corporate tax formula.
While filling income tax return you should show depreciation as per companies act
It means dep as per tax and dep as per co act are different.so in Balancesheet which dep show as per co Act or as per tax.
In balance sheet its company dep., deferred tax liability/assets as per the difference
SLM depreciation (100)-WDV Depreciation (70) x-1 = DTL (-30)
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