what is ment by deffered tax asset and deffered tax asset?
1 Replies
CA Miss Naamah
(N H R & Associates)
(377 Points)
Replied 11 February 2012
Deffered tax is accounting for the tax which would arise in near future. Many times, due to depreciation or disallowances, our profit as per profit/ loss account and taxable profit as per income tax act, do not match. So, defered tax provision is created to balance out the same in the books of accounts.
Eg : Profit as per Profit / loss account - 1,00,000 and taxable profit - 70,000 Now, there is a difference of 30,000. On this 30,000 - defered tax provision is made.
The difference in profits should be in the nature of timing difference i.e. temporary and not permanent.
Eg : Timing differences - depreciation as per companies act and as per income tax act, etc.
Permanent differences - Disallowances of donation, etc...
Recent Topics
- Iska djd djrbdsjebshe sir ur rei ejr reinr the jr
- GST registration for medical shop in Karnataka
- Hsshs me know if you are free number of the
- Chu Kang and the situation of the situation and I
- How to reverse wrong transaction payment in phonep
- Paytm wrong transaction
- How to reverse wrong transaction payment in phonep
- Issue with refund for person who has filed for rel
- How to take ITC for October 2024 GST Payment in PM
- How to refund a wrong transaction Phone Pe?
Related Threads
CAclubindia
