Deffered Tax

614 views 9 replies

Hello Sir 

 

Can any body tell me treatment of Deffered Tax??

 

If there is a big difference b/w Income Tax Loss and Accounting Loss, Income Tax Loss is more than Accounting Loss.

 

Depreciation as per Income Tax 5563 and  as per Accounts 52981.56.....................

 

Loss as per Income Tax (54057)   and  as per accounts it is (2475.78), it is because i have Rental Income in my books of Accounts bt as per Income Tax it should be treated under the head House Property, Same difference is for the treatment of its housing loan Interest.

Replies (9)

yes you need to make the provision of deferred tax on the diff of amount of depreciation but no need of the provision of deferred tax on the amount of renat income.

Make provision for Deferred Tax Assets (i.e. your profit will increase) by Rs. 

(Diff in Dep as per IT and Co i.e. (5563 - 52981.56) )* Income Tax Rate (i.e. 30%) 

(Loss as per Income Tax Act i.e. 54057) * Income Tax Rate (i.e. 30%) 

ops., i forget surcharge & cess..,

take following rates instead of above mentioned....

[IT Rate 30% + Surcharge (if applicable) + Cess]

Mr. Naveen pls clear me should i take depreciation on building while calculate difference between depreciation of IT and Account, as dep on building is a permanant difference, and there is no treatment for permanent differences in computation of Deffered Tax.

If r u taking the depeciation on building as per companies act and also as per income tax then provision for deferred tax to be made.

bt income tax does not allow deduction for dep on building,as it is for my rental income. thats why i have not taken it as for tax purpose. i have charged dep on transformer only.....so should i take differnce b/w the dep on transformer only?

yes u should take the diff on dep on transformer only

please go through about me on caclub profile

thanks sir


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