Tax Audit

Hello Friends

I want to know about Tax Audit U/S 44 AB Of IncomeTax Act. My Question Is Whether Deferred Tax Liability Is the Part Of Reserve And Surplus In Annexture-1. If Yes Then Why?, If not then in which head we would have to show this???

 

Replies (5)

It can be shown in the current liabilities head. As differred tax liab is only for the temporary difference, it can be considered a current liability 

It will not come under any head in Annexure-1 of Form No. 3CD.

Deferred tax assets and liabilities should be distinguished from assets and liabilities representing current tax for the period. Deferred tax assets and liabilities should be disclosed under a separate heading in the balance sheet of the enterprise, separately from current assets and current liabilities

There fore you should not show this in the Annexure 1 of tax audit report.

 It is a tax liability which comes under Current Liabilities and not part of reserves & surplus

Agree with Koneri!!

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