Go AD-FREE with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

Deferred tax

AS 257 views 1 replies

gaurav rana

student

46 Points Joined September 2012

Hiii All,

Query: if Company is having loss in current year as per Companies Act as well as Income Tax, and there is Virtual certaininty that in future can set off loss with income.

Kindly tell deferred tax Liability will be created on Difference of loss of Companies Act with Income Tax or only on Loss under Income Tax.

Thanks to all

Replies (1)

Guest

deferred tax is accounting treament

A deferred tax liability is an account on a company's balance sheet that is a result of temporary differences between the company's accounting and tax carrying values, the anticipated and enacted income tax rate, and estimated taxes payable for the current year.

go through link /articles/meaning-of-deferred-tax-liability-asset-in-simple-words-13385.asp