Accounts

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rahul sharma (Querist)
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31 October 2013 Dear friends,
want to know, whether provision for tax and deferred tax liabilities both are same or not.

in my case provision for income tax is lower than the income tax liabilities. can i use limit of deferred tax liabilities in this respect.

Please answered ASAP

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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10 November 2013 Provision of tax and deferred tax both are different, provision of tax related to your actual income tax calculation and liablity

Deferred tax calculation is profit adjustment with reference to the difference between the tax as per income tax and tax as per p&l under companies act