srikumar (audit staff) (1203 Points)
25 September 2014dear sir,
pls help me for calculating deferred tax because some one say depreciation as per companies act will be higher than depreciation as per income tax act , so companiy create deferred tax assest,
pls how to i find the deffred tax assest/ liability with some example pls
Divya Sethi
(ca student)
(459 Points)
Replied 25 September 2014
Deferred tax means it is a timing difference between the
companies and income tax act.
Deferred tax liability arise when the IT Act Depreciation
higher than the companies act depreciation.
Deferred tax Asset arise when the IT Act Depreciation
lesser than the companies act depreciation.
Divya Sethi
(ca student)
(459 Points)
Replied 25 September 2014
Check this out
praveen
(Chartered Accountant)
(6971 Points)
Replied 23 October 2014
First understand why deferred tax was brought in.
Companies have book profits and income tax profits. Tax is paid on income tax profits but dividend is issued based on book profits. There can a chance that the company is not paying any income tax but issuing huge dividends. To cut this short and to keep a buffer to the company determination of exact profits are required.
There are provisions under income tax which will lead to timing difference. Ex. you may pay tax today but profit might come to you actually in the future years.
To tackle this deferred tax was brought in
So first identify all the timing differences. It could be depreciation, preliminary expenses , expenses on which TDS is done late, etc
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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