deferred tax liability
srikanth
(Querist) 01 September 2008
This query is : Resolved
What is the difference between deferred tax asset and deferred tax liability.
Can any one tell me how to calculate deferred tax liability and how to create a provision for deferred tax in the financial statements.
srikanth
(Querist) 01 September 2008
What is the difference between deferred tax asset and deferred tax liability.
Can any one tell me how to calculate deferred tax liability and how to create a provision for deferred tax in the financial statements.
CA Pawan Goswami
(Expert) 24 September 2008
Deferred tax is an accounting concept, meaning a future tax liability or asset, resulting from temporary differences between book (accounting) value of assets and liabilities and their tax value, or timing differences between the recognition of gains and losses in financial statements and their recognition in a tax computation.
Deferred tax liabilities :-
Deferred tax liabilities generally arise where tax relief is provided in advance of an accounting expense, or income is accrued but not taxed until received. Examples of such situations include:
Deferred tax assets :-
Deferred tax assets generally arise where tax relief is provided after an expense is deducted for accounting purposes.Examples of such situations include:
