explain the defered tax liability or assets

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MOHIT

MOHIT (Querist)
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24 September 2008 Hi!

plz explain by example to deferred tax liability or assets.

thanks
Mohit

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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24 September 2008 When there is an accelerated availing of tax benefit as compared to the book results, DTL results.

Example: When the depreciation as per IT Act is more than depreciation charged in books.

When there is an eligibilty to claim a loss but the allowability is post poned DTA accrues.

Example: Payment under voluntary retirement, fully charged in books, but allowed in five instalments by IT.