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Deferred Tax in case of loss


Dhruv Jain (Practicioner)     02 July 2020

Dhruv Jain
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A company who have incurred loss in a year and does not have difference in accounting loss and taxable loss needs to create deferred tax asset compulsorily?

Also there is no depreciation so as to create deferred tax.

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yasaswi gomes   02 July 2020

yasaswi gomes

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DA is recognised when the carrying value is more than the tax base. If your mentioning losses, it can be setoff in the previous year. Trading income, also known as profit before taxes is offset with previous year’s losses to derive total taxable profits. From there, Taxes are deducted at a tax rate to get net profits. There is no need for deferred tax accounting for carry forward losses. 

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sabyasachi mukherjee   03 July 2020

sabyasachi mukherjee

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Deferred tax can be an asset or a liability.
deferred tax in case of a loss


there is always a difference between book profit and tax profit...
it cannot so happen both the accounting profit and tax profit are same.


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