Deferred Tax

Two governing bodies in India - Income Tax Authority and MCA

Provision for bad debts are put in expenses but not in taxes. That is one of the reasons we can hav
We do not have any tax refund here and thus DTA is made. DTA or DTL is made only when the diffe

Minimum Alternate Tax

If taxable income is negative or zero, but the Book profit is greater than zero, you are supposed to

Book profit 100

MAT 20

Taxable Income -50

Tax to be paid by taxable income 0

Final Tax to be paid 20

e of the reasons we can have difference in PBT and taxable income. This causes deferred tax asset
is made only when the difference is temporary i.e. you expect the diff to reverse in future

zero, you are supposed to pay MAT

d tax asset
 Transaction examples

Assets Expenses =
1 Not a transaction
2 Cash
25
3 Not a transaction
4 Cash
-20
Hotel Property
20
5
Liabilities Income

Share Capital
25