![]() ![]() With respect to timing differences related to unabsorbed depreciation or carry forward losses, DTA is recognised only if there is future virtual certainty. These deferred taxes are given effect to in the financial statements through Deferred Tax Asset and Liability as under: Sl.Noīook profit higher than the Taxable profitīook profit is less than the Taxable profit Deferred tax is recognised on all timing differences – Temporary and Permanent. The tax effect due to the timing differences is termed as deferred tax which literally refers to the taxes postponed. ![]() Permanent Difference – Differences between book income and tax income which is not capable of being reversed in subsequent period.Temporary Difference – Differences between book income and tax income which is capable of being reversed in subsequent period. ![]() Thisĭifference between the book and the taxable income or expense is knownĪs timing difference and it can be either of the following: ![]() Specifically allowed or disallowed each year for tax purposes. Profit and taxable profit because of certain items which are The financial statements prepared in accordance with the rules of theĬompanies Act and calculates its taxable profit based on provision of ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |