Deferred tax

u can go other way roung too accounting tax> income tax paid then DTL other wise DTA

net income before tax is called accounting income. tax collected on this income is tax expense. on the other hand, the income to the extent the IT authorities takes into consideration is called taxable income. tax calculated on such income is called current tax. the difference between tax expense & current tax is called deferred tax. this is timing difference only. if tax expense is more than current tax... that is deferred tax liability (DTL). (for example, if our expense is not fully/partly paid it is outstanding expense which is nothing but a liability. so as the case with tax also, here we call it as DTL. the contrast to the above is deferred tax asset.

net income before tax is called accounting income. tax collected on this income is tax expense. on the other hand, the income to the extent the IT authorities takes into consideration is called taxable income. tax calculated on such income is called current tax. the difference between tax expense & current tax is called deferred tax. this is timing difference only. if tax expense is more than current tax... that is deferred tax liability (DTL). (for example, if our expense is not fully/partly paid it is outstanding expense which is nothing but a liability. so as the case with tax also, here we call it as DTL. the contrast to the above is deferred tax asset.

Give me the information about deferred tax.

can anyone  help me  by briefing  on Deferred tax asset. How is it accounted

Originally posted by :Guest
"	Give me the information about deferred tax.	"

 

hi