TAx loss and Tax Profit

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Anil Meena (Querist)

08 April 2009 Hi,

If a company is charging Rs1500 Depreciation as per accounting and Rs1200 Depreciation for tax Purpose.
there is the Tax Loss of Rs300..

I m not able to interprate that how it is loss for company ,,it is look like a gain as the company is paid lesser tax because of Charging higher Depreciation.

my query : why it is Tax loss and please interprate and also give some brief on Tax Base.

Its urgent

Regards
Anil Meena

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)

08 April 2009 Take it in another way..If you are chargingmore today then yu will charge less tomorrow.

So in future your income gonna increase and thus increase of tax liability.

Anil Meena

Anil Meena (Querist)

08 April 2009 Hi Prakash,

Thanks for Reply but my question is why we consider it tax loss for todays statment. ?

Anil Meena

Anil Meena (Querist)

08 April 2009 hi prakash,
your view is contradicting ,,
Can you give me some more brief about its concept.

Regards
Anil

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)

08 April 2009 Dear Anil, your question itself not clear. When you are charging lesser depreciation in Income Tax then it means you are showing higher profits in Income tax and paying higher tax. How are you saying it a tax gain. Can you please elaborate your question exactly.

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)