Professional Documents
Culture Documents
Current tax :-
It’s the amount of income tax determined to be payable in respect of
taxable income or loss for a period
Deferred tax :-
It is the tax effect of timing difference
Timing differences :-
Differences between taxable income and accounting income which originate
in one accounting period and are capable of reversal in one or more
accounting periods.
Examples of Timing differences
Tax Expense = Current Tax +/- Deferred tax = > 10,000 + 8,000.
Example – is 8,000 Deferred Tax
Asset or Deferred Tax Liability ?
DTA and DTL to be set off if permissible under tax laws but
to be shown separately otherwise.