Procedure for Writing off Deferred Tax from Books

This discussion explains how to write off a deferred tax asset from company accounts when assets are amortised under the Companies Act but still depreciated for income tax. Even though no new timing differences are arising, a deferred tax asset may remain on the balance sheet. The procedure for its removal is detailed, with advice to consider other timing differences like TDS shortfalls or late statutory payments which could create liabilities to offset the asset.