How to adjust the Deferred Tax Liability of Previous Financial Year in Current F.Y.
(There is just credit balance reflected on Balance Sheet of Previous Year, no adjustment seems to have made)
How to adjust the Deferred Tax Liability of Previous Financial Year in Current F.Y.
(There is just credit balance reflected on Balance Sheet of Previous Year, no adjustment seems to have made)
Supposing if previous year’s Deferred tax liability Cr. In the balance sheet is 1000₹, PBT is 10,000, Current tax rate is 20%, then:
PBT 10,000₹
-2000₹ (10000*20%)
- Deferred tax 1,000
= 7000₹ PAT.
when you have previous years balance as 500₹ provision for deferred tax in SOFP, the:
10000₹
-2000₹
-(500-1000) 500₹
= 7,500₹ PAT.
Sure Sir, would try to get more details about it and will update for sure,once its clear to me,Thanks every one.
CMNITY HIRE
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