Deffered Tax Asset & Deffered Tax Liability.

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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)

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 I. T.)

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

AI Summary

Company Seeks Guidance on Deferred Tax Assets and Liabilities for Fiscal Year 2011-12, Including Journal Entries A private limited company seeks advice on recognizing deferred tax assets and liabilities for the fiscal year 2011-12. The company reports an opening balance of deferred tax assets at Rs. 10,489, with preliminary expenses and depreciation figures provided under both the Companies Act and the Income Tax Act. The book profit includes short-term and long-term capital gains, and the total taxable income is Rs. 873,200, with a tax liability of Rs. 249,285. The query asks for the calculation of deferred tax and the appropriate journal entries. The response emphasizes updating user profiles for better guidance.