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can DTA be adjusted aganist DTL?

shital (Chartered Accountant ) (67 Points)

28 May 2010

Can DTA be adjusted against DTL ?

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10 Replies

pramod kumar jampala (CA final student) (119 Points)
Replied 28 May 2010

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

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Rachit (Analyst) (913 Points)
Replied 28 May 2010

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

pramod kumar jampala (CA final student) (119 Points)
Replied 28 May 2010

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

CA.Pravinchandra (Executive (F&A)) (2387 Points)
Replied 28 May 2010

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...

manoj (student) (5205 Points)
Replied 28 May 2010

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

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Vikram Soni (Student) (103 Points)
Replied 29 May 2010

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....

muttu (Article) (57 Points)
Replied 29 May 2010

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

Mukesh Rathor (A.A) (48 Points)
Replied 29 May 2010

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

Vinay Bhati (Practicing Chartered Accountant) (40 Points)
Replied 29 May 2010

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.