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)
rutuja prabhune (97 Points)
28 April 2020How 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)
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 28 April 2020
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.
sanjith kotni
(Articled assistant)
(663 Points)
Replied 28 April 2020
SUSHANT BIDAYE
(578 Points)
Replied 28 April 2020
sanjith kotni
(Articled assistant)
(663 Points)
Replied 28 April 2020
rutuja prabhune
(97 Points)
Replied 29 April 2020
Sure Sir, would try to get more details about it and will update for sure,once its clear to me,Thanks every one.
SOHAN LAL
(Manger Accounts & Finance)
(363 Points)
Replied 12 May 2020
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