Deffered tax

This query is : Resolved

naman (Querist)
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19 September 2011 we have a deferred tax asset of Rs 19000 in the balance sheet. what should be its treatment. should it be carry forward to subsequent year to be setoff from deferred tax liability or its adjustment from income tax is possible. what if we are planning to dissolve the company.

Vivek Mehta (CA, DISA,CS, MBA)

Vivek Mehta (CA, DISA,CS, MBA) (Expert)
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19 September 2011 The entry of Deferred Tax is a notional entry. Yes the amount of tax gets set off from the deferred tax liablity that is being created. this is just a virtual entry which has no impact on the tax treatment that is required to be done as per the IT Act, 1961.

Vivek Mehta (CA, DISA,CS, MBA)

Vivek Mehta (CA, DISA,CS, MBA) (Expert)
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19 September 2011 If the concern is planning to dissolve and wind out than it has nothing to with the things...its effect is seen only in the accounts...nothing is there in the hard cash form..

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