Procedure for Writing off Deferred Tax from Books

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The Assets from the books of Accounts have been amortised as per Companies act and the same block of Asset is still being depreciated as per income tax act. Hence no new deferred Tax would be created due to no timing difference. However there is a deferred tax asset showing in the Balance sheet.

What is the procedure for writting off the Deferred Tax Asset in this case.

Replies (2)
Procedure for writing of deferred asset is mentioned I detail.
@ Dhruv Jain ,

Depreciation is not alone reason for deferred tax ..

You may check other time differences like payments without tds , payment of statutory dues after due date etc . These may create deferred tax liability and which can be adjusted against deferred tax asset


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