Deferred Tax Calculation in case of Loss

Loss as per Books Rs. 30,000/-
Depreciation as per books 1,200/-
Depreciation as per Income Tax Act 1,000/-
Expenses Disallowed u/s 37 Rs. 10,000/-

What will be the deferred tax
Replies (2)
Quick Summary
This discussion explains how to calculate deferred tax when a company experiences a loss. It highlights that disallowed expenses and differences in depreciation between accounting and tax rules create timing differences. These differences can increase taxable income, potentially leading to a Deferred Tax Asset (DTA). The exact calculation can be influenced by factors like turnover and specific tax regimes chosen by the company.

Timing Difference between Accounting income and Taxable income is (Rs.10000+200) = Rs. 10200/-

Rs. 10200/- increases the taxable income .

You may consider Rs. 10200*30% as DTA

This may vary based on different factors like turnover , opting for section 115BA , 115BAA, 115BAB etc
Thank You

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