Deffered Tax Asset/Liability

This query is : Resolved

CA.SURESH MURUDI (Querist)
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06 August 2009 Sir,My clint is Partnership Firm.Firm has loss of Rs.25657 during the year 2008-09.What is the deferred taxasset/liabilty? for accounting and plz explain the desclosere.

CA. Gurdeep Singh Chawla

CA. Gurdeep Singh Chawla (Expert)
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06 August 2009 Deferred tax is the tax effect of timing differences.Timing differences are the differences between taxable income and accounting income for a period that originate in one period and are capable of reversal in one or more subsequent periods.
Examples:
- Depreciation rate/method different as per Accounts and Income tax Calculation
- Expenditure of the nature mentioned in Section 43B (e.g. sales tax charged in account on accrual basis but not paid; such sales tax will be an allowable expenditure in the year of payment and a disallowable expenditure in the year in which accrued