deffered tax

This query is : Resolved

Report Abuse Follow Query Ask a Query

Darshan

Darshan (Querist)
Follow

15 June 2011 Please provide me deffered tax calculation with example in excel

CA Harish Suwalka

CA Harish Suwalka (Expert)
Follow

16 June 2011

CA SURENDRA KUMAR RAKHECHA

( Expert )
18 December 2009

Ms. Gayathri; I explained deferred tax previously without getting any thanks from your side !

The example is like that :

Tax payable as per books : 10000
Tax payable as per computation : 4000

So in future ultimately you have to pay Rs. 6,000/- as income tax. This is treated as Deferred Tax Liability. The opposite is Deferred Tax Asset.

When book profits and computed profits under Income tax are same then deferred tax will be nil.

Theoritically; at one point of time; the difference will be set off.

But practically; the difference will continue because there will always be a difference in book profits and computed profits.

CA Rakhecha,Surat

"with due respect i share one answer from Rakecha sir"