17 July 2008
Deferred Tax Asset or Liability is created by making a provision or write back from the Profit or Loss a/c for the year. the same is created to account for and represent the tax effect on the timing differences of certain expenses and income where the allowability or incidence has been deferred to the succeeding years in accordance with the provisions of Income Tax Act. To know more, pl go through the AS22 issued by ICAI.
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