DTA and DTL
Shivaputra Mhetre (25 Points)
20 December 2020
what are norms/rules for recognition of DTA and DTL in P&L account?
3 Replies
ayusmita
(Tax consultant)
(5890 Points)
Replied 21 December 2020
Deferred tax assets in balance sheet of a company are those assets or say items which uses to reduce the taxable income in the future
it arises when there's is difference in tax rules and accounting rules or there's is carry over of taxlosses
where's as deffered tax liability is opposite to it
it is those items which can increase the amount of income tax owed by a company
it's an obligation to pay tax in future by company
it arises when there's is difference in tax rules and accounting rules or there's is carry over of taxlosses
where's as deffered tax liability is opposite to it
it is those items which can increase the amount of income tax owed by a company
it's an obligation to pay tax in future by company
Shivaputra Mhetre
(25 Points)
Replied 21 December 2020
Ok. whether it is ok if entity credits the DTA to P&L account.?
Krishna Chaudhary
(Accountant)
(4531 Points)
Replied 09 January 2021
If you will create different tax asset it will be treated as income and when you will create the fat tax liabilities it will be treated as expense.
it will be adjusted with current year tax as a tax expense or income
it will be adjusted with current year tax as a tax expense or income
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