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ITR 6 Deferred Tax Liabilities
Under Part A Balance Sheet the amount of Deferred Tax Liabilities is not getting added up in total amount of Liabilities? Any solution for this ? Plz guide on this
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| Deferred Tax Liability (DTL) is a pure accounting/Ind AS concept and does not directly affect taxable income. Here is how it is handled in ITR-6: 1. What DTL Is: DTL arises when book profit is higher than taxable profit (e.g., due to book depreciation being lower than tax depreciation under WDV). It represents future tax payable. 2. ITR-6 Disclosure — Balance Sheet Schedule: - In ITR-6, go to Schedule BS (Balance Sheet) - Under 'Sources of Funds' → 'Deferred Tax Liability' → Enter the closing balance of DTL as per books - Under 'P&L' → If deferred tax expense (DTL created/increased) during the year, it appears as a charge in the P&L 3. Deferred Tax Does NOT Affect Taxable Income: - DTL/DTA is a book entry only — it has no impact on tax computation in ITR-6 - Tax payable is computed purely on taxable income as per IT Act provisions - DTL is NOT a deductible expense for income tax purposes 4. MAT (Section 115JB): - Deferred tax expense shown in P&L is ADDED BACK when computing Book Profit for MAT purposes under Explanation 1 to Section 115JB - Similarly, DTA write-back is deducted from book profit for MAT 5. Practical Steps: - Schedule P&L: Show Net Profit after tax (which includes deferred tax charge) - Schedule BP (Book Profit for MAT): Add back the deferred tax expense / deduct DTA credit shown in P&L - Schedule BS: Show DTL as a liability on the balance sheet. |
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