CA Final Student
699 Points
Joined February 2012
It means when the Tax calculated as per IT LAW is less than the Tax calculated as per Books of Accounts that a Company creates the provision for Deferred Tax Liability which ll be paid in the years to come(When tax as per Books of Accounts ll be more than the tax as per IT LAW that Deferred tax Liability ll keep on reducing year by year & finally become Nil)as per AS-22.