Deferred tax

the reason for creating DTA is only that there will be future taxable income against which such DTA can be adjsuted. this income need not be from selling of assets; it can be income from operations.

And the rate will be normal rate of tax only

@ ashish gupta, how the investments and the income from  business operations can be related.I dont think so....

sir the reason that DTA is created is not the decrease in the value of investment but the reason that this decrease will not be allowed as per tax.

Timing difference(in payment of tax): which originates in one period and is capable of reversal in subsequent period(s):

--> difference in net block of fixed assets as per accounts and as per tax due to difference in the rate

and method of depreciation;

 -->provision for doubtful debts and advances, provision for warranties, provision for VRS, provision

for asset write-off, disallowed payments under 43B of Income Tax Act, provision for excise

liabilities, provision for diminution in value of investments, scientific research expenditure (not

weighted deduction which is a permanent difference), section 350 deduction, amortization of

deferred revenue expenditure, lease income.

Such provisions are mere provisions and its the amount of allowed expenditure for tax calc purpose..