As per companies act is it mandatory to show the income tax saved in case of a company undergoing loss????????? If so please do let me know as to how it has to be disclosed???? Further is there any provision which makes this disclosure a mandatory one????
30 September 2007
As per auditors report it will be shown as "accumulated losses and loss during the year"
As per AS 22 deferred tax working - DTA should be shown by way of Notes. PRUDENCE basis the same need not be considered in the financial statements.
In profit and loss adjustment account how much is the Depreciation loss and business loss as per Income tax act and Companies act respectively should be given by way of note so that it will be useful to set off in subsequent year.
11 November 2007
AS 22 prescribes DTA and DTL. Deferred Tax Asset can be created only if you are virtually certain of making profits in the future. Thus you can create DTA if your company is virtually certain that it will make profits in the future.
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