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This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

10 April 2013 Hi

I have a query regarding the Defered Tax calculation in case of business loss as per books of accounts and also business loss as per income tax.Also if there was DTL available (for the Previous years) can i reverse DTL.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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10 April 2013 If the company is virtually certain that sufficient profit will emerge during the year, DTA can be recognized on the business loss which can be set off against the opening balance of DTL.
If DTA is not booked, opening DTL can't be reversed.

Querist : Anonymous

Querist : Anonymous (Querist)

10 April 2013 Thank you sir

But if the company is not having income in future years ,then also DTL can be reversed ?
If any if New DTL arises then how to recognise it.

In case of C/f of losses, how DTA arises as in this case Accounting income is more than the Taxable Income,so DTL can be recognised.
Please elaborate these matters.

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