Deferred Tax in case of loss
Dhruv Jain (Practicioner) (202 Points)
02 July 2020Also there is no depreciation so as to create deferred tax.
Dhruv Jain (Practicioner) (202 Points)
02 July 2020
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 02 July 2020
DA is recognised when the carrying value is more than the tax base. If your mentioning losses, it can be setoff in the previous year. Trading income, also known as profit before taxes is offset with previous year’s losses to derive total taxable profits. From there, Taxes are deducted at a tax rate to get net profits. There is no need for deferred tax accounting for carry forward losses.
sabyasachi mukherjee
(27312 Points)
Replied 03 July 2020
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)