Which of the following considered while making calculations of Deferred Tax :
1. TDS Deducted but not paid 2) Provident Fund & ESI Employees Share (Not paid before due date as per ACT) 3) Bonus debited to P&L Account but not paid before filing of ITR.
Can anyone help me.
| Originally posted by :Mohan Saxena | ||
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As per the provisions of sec 43B, All the said expenses will be considered for calculating Deferred Tax as the income tax allows the deduction on payment basis in the AY in which the same are paid whereas the companies act allows the deduction on accrual basis. |
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If the above 3 expenses are not paid before the filing the return as per IT act this will be disallowed and this should be considered while calculating the defferd tax either it will become a liability/asset as per AS-22 any one of them should be diclosed in balancesheet.
all the 3 items r not paid (assuming not paid for a.y..year) shall be disallowed n treated as per AS 22 TAXES ON INCOME either be DTA or DTL .(as the case may be)
Provident fund & ESI not paid as per date of act is PERMANENT DIFFERENCE because this will never be allowed in future by income tax department.
But Rest two are Timing Difference according to AS 22.
this will be allowed in future previous year when it will be paid.
These two will be benefit in future so you have to create DEFFERED TAX ASSET on both of them. and ignore 2nd point.
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