Dta and dtl

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 October 2014 while calculating of DTA and DTL
Temprary difference
Permanent difference
Timing difference is considered please mention the example for the above said three differences.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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08 October 2014 example of timing difference is disallowance of expense under section 43B. in companies accounts such expenses shall be allowed on accrual basis. however, in tax the deduction shall be allowed only on payment basis.

other example is depreciation

permanent differences are like exempt income...the income will be considered in P&L but not in tax ever, thus leaving a permanent difference.

Temporary differences are nothing but timing differences.