Defered Tax

[Guest]

Dear Sir,

Please tell us , what is defered tax ..?

how top calcualate it on which figer ?

please explane by a example....

regards

keshav.

AI Summary

Understanding Deferred Tax: Timing Differences in Tax Liabilities Explained with Examples from Income Tax and Accounting Standards. A query was raised about deferred tax, seeking an explanation and calculation method. A respondent explained that deferred tax arises from timing differences between the Companies Act and the Income Tax Act, such as differing depreciation rates, affecting current and future tax liabilities. Another respondent noted that deferred tax is based on differences between accounting income and taxable income, recognizing timing differences that can reverse in future years. They highlighted examples like TDS disallowance and preliminary expenses, while permanent differences, such as penalties and certain fees, do not reverse and require adjustments in taxable profit.