The net profit before tax of a company is Rs. 2.56 Crore and the deferred tax liability to be provided amounts to Rs.2.96Crore.
Whether the deferred tax is to be provided to the extent of net profit before tax(2.56 crore) or to the amount of Rs. 2.96crore, which would result in the loss of Rs. 0.40 crore??
Deffered tax is a below line item... You have to debit in p&l account even it goes for loss...
Profit before tax - 2.56 crore
profit aftr tax - (0.4) crore
I that u have to consider current year tax expnses also..
| Originally posted by : Pooja Soni | ||
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Deferred tax should be provided to the extent of Deferred tax amount , whether PBT is Nil or in Mines. We will not consider Current tax exp., if Taxable Income is nil.
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Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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