How to calculate deferred tax liability? I'm writing an audit report of a company and the books of accounts submitted by the client are in as per Companies Act and I need to calculate tax liability as per Income-tax Act, so how to calculate Deferred Tax liability? Please help me.
Menu
Deferred tax liability
Replies (2)
1) 1st calculate total depreciation as per companies Act.
2) calculate total depreciation as per IT Act.
3) Excess Depreciation as per IT Act i.e. (2) - (1)
4) Deferred Tax Liability = (3) * 30.9%
The above Deferred Tax Liabilty is only provision should be made during the year
In the above amount Add Opening balance of Deferred Tax Liability and you will get closing Balance of Deferred Tax Liabilty
Thanks Riddhi!
Recent Topics :
- Last day for ITR-U for AY 2023-2024 (FY 2022-2023)
- Sale of shares in indian company by a non resident
- Difference in TIS
- GSTR-9C Upload Status Error Occured
- “Income Tax Implications of Company-Related
- Advice needed: Hypothetical case of non-filing of
- Demand Raised for Cess Amount Despite Section 89 R
- WRONG BILL NO FILED IN GST R1
- Addtional trade name for my another firm
- Commission / Agency Business without books: REAL E
Related Topics :
CAclubindia
