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deferred tax liability entry

Shaik ( M.com,IC(W)AI - Inter) (723 Points)

11 May 2011

Dear All,

any one can help me how to make adjustment entries for Deferred tax liablity and under which head i have to create a ledger in tally.

Thanks in Advance .

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6 Replies

valji (Accounts manager-MBA) (2150 Points)
Replied 11 May 2011

you may create to haed deffred tax asset or deffred tax liablity under curreant asset or liablity

,for example for company act deprecition rate & as per income tax act both rate are Diffreant

Timing difference in respect of deprciation (for FY 09-10) on assets appearing
in the books as on 01.04.09

Income Tax Depreciation	918413
Less: Book Depreciation	1045980
	127568
Tax Effect of the above Timing Difference ( @ 30.9%) Deferred Tax Liability		39418

Deferred Tax Asset A/c. Dr.

To Profit & Loss A/c.

Profit & Loss Account Dr.
To Deferred Tax Liabilty

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Shaik ( M.com,IC(W)AI - Inter) (723 Points)
Replied 11 May 2011

thank you very much very good explanation you have given .thank a lot.

1 Like

shiva basaula (Chif Accountant) (21 Points)
Replied 17 December 2012

Thanks it is also useful for me

Umesh V Naig (Statutory Analyst) (452 Points)
Replied 12 April 2013

Originally posted by : Shaik

Dear All,

any one can help me how to make adjustment entries for Deferred tax liablity and under which head i have to create a ledger in tally.

Thanks in Advance .

when the entire assets are sold how to reverse the defered tax liability