Deffered Tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 May 2010 suppose as per Co.Act Dep. is 100/- and as per IT 200/-and total Net Profit is 500,then the how much tax i have to pay,what will be the result,DTA or DTL ? is any part of DTA or DTL will go to Balance sheet.

Rahul Gupta

Rahul Gupta (Expert)
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05 May 2010 Tax Paid will be Rs.200
The DTA will be created of Rs.100 (200-100) and shown in the Balance sheet.

Querist : Anonymous

Querist : Anonymous (Querist)

05 May 2010 please breif it how can it be rs. 200/-

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CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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05 May 2010 DEP IS ALLOWED AS PER IT I.E 200.
IN THIS CASE DEP AS PER IT ACT IS EXCESS i.e you have save tax now, you have to pay tax later in next years when dep as per IT act will be lower than Dep as per Co. Act.
Deffered tax liablity is to created in such case i.e 30% of (200-100) i.e by Rs.30
Tax payable is 30% (500-200)=90
Retained earning is Rs. 300-90-30=180
Deffered tax liability is to shown Rs.30.