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
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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.