Companies act v/s incometax act

Depreciation rate difference as per income tax and company act that's why deferred tax arise.

There are so many items which are allowed/ disallowed in income tax at different time as against the normal accounting practice. It results in timing difference as per as 22. Timing difference are those that arise in one year and get reversed in subdequent years. Consequemntly DTA/DTL has to be recognised. For example Depreciation Prel. Exp sec 43 b where deduction is allowed on payment basis. etc