Deferred tax

This query is : Resolved

Prashanth (Querist)
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01 October 2011 Hi all,
We create deferred Tax asset on Diminution or decrease in the value of investments and impairment loss on fixed aseets,but on what evidence or source these DTA is created (i.e either the company will sell these assets in future at higher price or reversal in future)
and what is the rate should be applied either normal rates or capital gain rates ?

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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05 October 2011 since on the sale of depriciable assets the DTA must be created at normal rates

as sale of depreciable assets give rise to shrt term captal gain as per income tax section 50 not long term capital gain