DEFERRED TAX LIABILITY ON CREATION OF SPECIAL RESERVE UNDER SECTION 36(1)(viii) OF THE INCOME TAX ACT, 1961

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....serve' created by banks under Section 36(1) (viii) of Income Tax Act, 1961 (hereinafter referred to as 'Special Reserve'), in terms of which, only the net amount of such Special Reserve (net of tax payable) should be taken into account for the purpose of computation of Tier-I capital. 2. In this context, it has been observed that some banks are not creating deferred tax liability (DTL) on Speci....