Can any body tell me the tratment of Deffered Tax? I there is a big difference b/w income tax loss and accounting loss..... Income tax loss is more than the accounting Loss....
07 September 2010
Aditya Can u pls solve my problem that:-
My accounting loss is (2475.78) and as per income tax loss is for (54057.00) jst because of the treatment of Rental Income as i have taken rental income in my books bt as per tax rules it should be taken under the head of House Property, same difference for the treatment of housing loan Interest....Rental Income is 330000 and Interest is 258000....
Here is also a difference b/w depreciation As per Income Tax it is 5563 and as per accounts it is 52981.56...now pls clear how to do..
07 September 2010
First of all at the outset deferred tax to be made only on timing differences and not on permanent differences. If the depreciation as per accounts is including depreciation on house property then deferred tax is not to be made on the said depreciation as depreciation as per IT not allowed and hence it is permanent difference.
So in the above case considering the above still depreciation as per books is more than as per accounts then DTA will be required to be made on the difference of depreciation as per books and income tax as depreciation in books is more.
For loss as per income tax act DTA will be made on Rs. 54057 on loss as per income tax act subject to prudence and virtual certainity.
07 September 2010
Thanks Aditya..... bt i wanna tell u that i have charged dep. only on transformer not on building according to Income Tax, bt in the books ofaccount i hv charged on both transformer as well as building according to company rates.. so nw tell me finally what should i do.?
07 September 2010
sorry to disturb u again Aditya.... pls refer to my above ques., further i added that dep on transformer as per IT act is 5563 and as per accounts 5663,means here is difference of100. so is deffered tax asset will be 30.9 i.e 31.... pls reply me soon its urgent
07 September 2010
Since depreciation as per books of accounts is more than as per income tax act DTA will be made at the rates as applicable in the next year for the company.
So it will be Deferred Tax Asset only on the same.
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