Deffered tax
This query is : Resolved
22 October 2011
what is deffered tax explain it with example
22 October 2011
Deferred tax is governedby AS -22.
Deferred tax is the timing difference between Taxable Income and Accounting Income.
Deferred Tax Asset : Where is taxable income is more than accounting income [ accounting income means profit as shown in P&L], the Deferred Tax Asset Arises.
Deferred Tax Liabilities : Where Accounting income is greater than Taxable income then Deferred Tax Liability will arise.
Example :
Profit as per profit & Loss Account 100000
Dep as per Companies act 25000
Allowable Dep as per Income Tax act 40000
Taxable Income [ 100000+25000-40000] 85000
Timing difference is [100000-85000] 15000
Deferred Tax Liability [ 30% *15000] 4500
Deferred tax is the timing difference between Taxable Income and Accounting Income.
Deferred Tax Asset : Where is taxable income is more than accounting income [ accounting income means profit as shown in P&L], the Deferred Tax Asset Arises.
Deferred Tax Liabilities : Where Accounting income is greater than Taxable income then Deferred Tax Liability will arise.
Example :
Profit as per profit & Loss Account 100000
Dep as per Companies act 25000
Allowable Dep as per Income Tax act 40000
Taxable Income [ 100000+25000-40000] 85000
Timing difference is [100000-85000] 15000
Deferred Tax Liability [ 30% *15000] 4500
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- TDS U/S. 194NF
- Applicable TDS rate for sale of property in Nov 2024
- RCM INVOICING FROM NOV-2024
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
- CASE INTIMATION OF LIABILITY UNDER SECTION 73(5)(Rule 142(1A)
Trending Online Classes
CAclubindia
