19 July 2012
The income as per Books and as calculated for Income tax may not be same. The difference b/w these are of two type Timing difference - Exp / Income allowed today but disallowed later.
Permanent difference - Exp disallowed today never be allowed.
Timing difference is consider for calculating DTA/DTL
Disallowed today and Allowed later will creat DTA.
Allowed today but disallowed later will Create DTL
Calculation of DTL = Amt allowed today*Tax rate of future
Calculation of DTA = Amt disallowed today*Tax rat for future.
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