how to calculate the deffered tax #

format for calculating  DTA / DTL is as follows:

opening bal of timing difference          = xxxx

additions                                                  =xxxx

deletions or reversal                              = xxx

Closing bal                                              =xxxx

tax rate                                                     =xxxx

DTA                                                          =  tax rate x closing bal

Opeing bal of DTA                                =xxxxxx

Charge to P & L a/c                              =xxxx

DTA is the asset which will be created for any financial year when any expenses is disallowed by the ITA and it can be reviewed and revised in subsequent years.

DTL is the liability recognised for any financial year where there is excess allowance by the ITA. 

The method use for recognition of DTA and DTL is as follow

Opening bal.                                       xxxxxx

+addition                                             xxxxxx

-deletion                                              xxxxxx

balance                                               xxxxxx

tax rate 

DTA/DTL(B/S value)

-opening bal

DTA/DTL(P/L value)