can DTA be adjusted aganist DTL?

Tax queries 4119 views 10 replies

Can DTA  be adjusted against DTL ?

Replies (10)

THIS IS FOR CREATING AWARENESS TO THE USER'S OF "ONLINE ITR FORMS"

WHILE CLICKING THE BUTTON "CALCULATE TAX" (available on the top right  in "Taxes paid and Verification" sheet),THE FORM ITSELF AUTOMATICALLY CALCULATING THE TAX. BUT THE PROBLEM ARISES IN THE CASE OF INTEREST(U/s 234 B & C), AS THE SOFTWARE IS CONSIDERING THE OLD SLAB OF ADVANCE TAX  i.e. Rs.5000/- AS AGAINST THE NEW SLAB OF Rs.10000/-..........., THIS ISSUE NEEDS RECTIFICATION FROM THE SIDE OF SOFTWARE DEVELOPERS FOR THE INCOME TAX DEPARTMENT AND TILL THAT TIME THE USERS NEED TO BE CAUTIOUS...

THANK YOU

Pramod Kumar Jampala

Yes it has to be adjusted and in your case the Net Deferred Tax Asset will be reflected on the Assets Side of the Balance Sheet

YES, DTA CAN BE ADJUSTED OR NETTED OFF AGAINST DTL, ONLY WHEN THE ENTERPRISE HAS A LEGALLY ENFORCEABLE RIGHT TO SET OFF...

Originally posted by : pramod kumar jampala

YES, DTA CAN BE ADJUSTED OR NETTED OFF AGAINST DTL, ONLY WHEN THE ENTERPRISE HAS A LEGALLY ENFORCEABLE RIGHT TO SET OFF...

yes dta can be adjusted but with certain conditions which differs from entity to entity

 

Yes it has to be adjusted and in your case the Net Deferred Tax Asset will be reflected on the Assets Side of the Balance Sheet

and depend on the entity....

 dta  arised  out of  excise duty   dtl on account of  income  tax  now can it be  adjusted

DTL and DTA can be set off against each other if they have been created under same governing laws,that permit set off of tax assets with tax liabilities...

 

tk cr

Deferred tax assets can be adjusted with deferred tax liability, but as per AS-22 DTA should be created when organization is certain about income in future for write off DTA.

Your problem clearly relates to AS22 "TAXES ON INCOME".

As per As22- DTA can be adjusted against DTL if:

(1)ENTERPRISE HAS LEGALLY ENFORCEABLE RIGHT TO DO SO     AND

(2)ENTERPRISE INTENDS TO DO SO.

if above conditions satisfied then enterprise can setoff dta against dtl.

Bye


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