Dear frnds
I want to know if expenses disallowed under IT Act like additional income tax demand and interest on tax requires calculation of deferred tax asset . Pls reply soon
Urgent to know
Thanks in advance.
ankita Goyal (Student CA Final) (113 Points)
21 May 2012Dear frnds
I want to know if expenses disallowed under IT Act like additional income tax demand and interest on tax requires calculation of deferred tax asset . Pls reply soon
Urgent to know
Thanks in advance.
CA Tushar Lakhanpal
(CA)
(416 Points)
Replied 21 May 2012
the expenses mentioned by you does not need any Deffered tax asset or liability
Only those expenses need this provision which causes timing difference (i.e the exp. which have occured today in our financial accounts and tomorrow it will occur in our Accounts maintained as per income tax act )
But the expenses such as interest on tax and penalty , demand etc. creates permanent differences hence no provisioning is required i.e which are permanently disallowed
Regards
Tushar
Rajesh
(C.A. )
(38 Points)
Replied 21 May 2012
expesnses disallwoed is never going to be allowed which creat permanet difference so there is deffered tax libility
regard
rajesh
Rajesh
(C.A. )
(38 Points)
Replied 21 May 2012
In the above I skiped no so now I clarify that in case of permanet difference ther e is no defferd tax liability
Regard
Rajesh