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Deferred tax liability/asset

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25 September 2012 whether a company having loss for a financial year should calculate deferred tax liability/asset for that FY?

25 September 2012 yes its requried under AS-22.

25 September 2012 i) Deferred tax liability should be recognized as per AS 22 on the timing difference on account of depreciation.

ii) Deferred tax asset need to be recognized only if there is virtual certainty that sufficient income will generate in the ensuing year.


25 September 2012 thank you very much.

25 September 2012 Deferred tax is the tax effect of timing difference.

Timing Difference are the difference between taxable income and accounting income for a period that originate in one period and capable of reversal in one or more subsequent period

Eg: There is a difference in the wdv as per companies act and wdv as per income tax act, the difference multiplied by substantively enacted rate,



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