Differed tax

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Mouli

Articleship

41 Points Posted on 15 July 2014

If a company incurred loss(as per books of accounts maintained under Companies Act), how to treat that loss as per companies act & as per income tax act.In this case whether differed tax will arise or not, if there is profit as per Income Tax Act because of heavy inadmissible expenses.how to caluclate differed tax in the following cases.

a)if assessee file the return as per sec 139(3)

b)if the assessee did not file return as per sec 139(3)

Replies (7)

Dharmendra rana

Job

54 Points Posted on 15 July 2014

FOllow AS-21 on Deferred Tax, and you will get clarified.

I suggest just read D.S.Rawat (CA Final) on Accounting Standards.

Tribhuvan Aditya Singh

Student as well as Self-employed

3853 Points Posted on 15 July 2014

i agree with above answer.... you need to follow the AS and you will get all answers.

Teena Singhal

51 Points Posted on 15 July 2014

I think its As 22 on deferred tax.. As per AS deferred tax will arise on losses if there is resonable certanity with convincing evidence that there will be resonable profit in the coming years though which defered tax will be set off.. For more details please refer As.

pooja shah

29 Points Posted on 16 July 2014

deferred tax will arise only if der ia certainity that profit will occur .in this case it seems dat as per books profit wont occur hence dont create

Hitesh Singh

articled assistant

26 Points Posted on 16 July 2014

As per AS 22, the concept of deffered tax is to.neutralize the timing difference, on which tax is levied on specefic heads which differ as per both the statutes. Expenses inadmissible do not influence the treatment as per AS 22, especially in case of depreciation, unless specifically stated in contravention, that is calculated otherwise thsn provided for in the act

CMA Mohit Arora

Financial Consultant

155 Points Posted on 16 July 2014

Para 17 of AS-22 shall be applicable while company is having losses

Amber Jain

Article Assistant

150 Points Posted on 16 July 2014

If the inadmissible expenses which you are talking about is relating to expenses which will be allowed in future years then Defered Tax Asset will arise but if the above expenses are nature of permanent disallowances then no DTA/DTL will arise. But above reply is subject to the reasonable certainty that in future profits will arise.