Defferred Tax Asset & Liability

[Guest]

Dear Sir,

My client is Pvt. Ltd. Company and his accounting figure  for the FY 2011-12.

Deffered Tax Assets Op. Bal -  Rs.10489
Preliminary Expenses as per IT Act                 --  Rs. 17160
Depreciation as per Co. Acts                        -- Rs.69722
Depreciation as per IT. Acts                         ----Rs.83370
Book profit as per P & L A/c. --- Rs.2314052 Including STCG Rs.132902 & LTCG Rs.1408209 on share & Dividend Rs. 19000)

Total Income as per Computation                  --- Rs.873200

Tax on total income       --- Rs. 2,49,285 (STCG 20533+Normal tax 228752)

Minimum alternative tax --- Rs. 437316
(on Book Profit 2314052-19000)

What is the amount of Defferred tax asset or Defferred tax liability to be recognized in current year.

And how to pass the journal entries in accounts.

Thanks & Regards

[CAGOPALJI AGRAWAL]

Your querry is not disclosing complete facts like preliminary as per it act,then what is the total expenses etc. 

[Guest]

Prelimery Exps.   ====  Rs.19800 (For Share Capital Increase)
Prelimery Exps.   ====  Rs.66000 (For Share Capital Increase)
                                                  ========
Total Exps.                               85800
                                                  ========

Total Exps. 85800 /5 Years = 17160 (Deduction u/s 35 D of  IT Act 1961.)

AI Summary

Company Seeks Guidance on Deferred Tax Assets/Liabilities for FY 2011-12; Clarification on Journal Entries Needed A private limited company is seeking advice on recognizing deferred tax assets and liabilities for the fiscal year 2011-12. The company's financial details include deferred tax assets with an opening balance of Rs. 10,489, preliminary expenses, and differing depreciation values as per the Companies Act and Income Tax Act. The book profit is Rs. 2,314,052, with specific amounts attributed to short-term and long-term capital gains and dividends. The query seeks clarification on calculating deferred tax and appropriate journal entries. A response highlights incomplete information regarding preliminary expenses, which are detailed further by the inquirer.