21 October 2013
REFER BELOW ARTICLE,, IT WILL GIVE YOU GOOD IDEA ON THIS CONCEPT . . . https://www.caclubindia.com/articles/meaning-of-deferred-tax-liability-asset-in-simple-words-13385.asp#.UmU0qPmnq3g
21 October 2013
A deferred tax liability occurs when taxable income is smaller than the income reported on the income statements. This is a result of the accounting difference of certain income and expense accounts. This is only a temporary difference. The most common reason behind deferred tax liability is the use of different depreciation methods for financial reporting.
A deferred tax asset is the opposite of a deferred tax liability. Deferred tax assets are reductions in future taxes payable, because the company has already paid the taxes on book income to be recognized in the future (like a prepaid tax).
However go thru the link provided by Expert for the complete guidance...