banner_ad

Deffered Tax

Others 241 views 3 replies
depreciation is calculated as per income tax in accounts and in 32 depreciation, but in the current year there is cash purchase of asset Rs.15000 in the current year so such cost not considered as actual cost in the income tax, in such case there is difference between book value and income tax wdv value, there is any need to create deffered tax in this situation?
Replies (3)
No, there is no need to create deffered tax as this is a Permanent Difference – Differences between book income and tax income which are not capable of reversing in subsequent period
Are you sure?
Yes diet
we pay cash above Rs.10,000/- this expense will not be allowed for tax purpose any time. So this is permanent difference.

We should keep in mind that Deferred Tax Liability or Deferred Tax Assets are created only for temporary timing difference. For permanent difference it is not created as they are not going to be reversed in future.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
22 May 2026
U.S. Financial Reporting & Consolidation Manager

Karia Overseas

Ahmedabad

CA

View Details
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details