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can some one pls explain briefly about 'Differed Tax'?
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Answer / kalyani
Deferred tax is an accounting term, meaning future tax
liability or asset, resulting from temporary differences
between book (accounting) value of assets and liabilities,
and their tax value. This arises due to differences between
accounting for shareholders and tax accounting.
Tax deferral may also refer to incentives provided that
allow a taxpayer (an individual or a company) to defer or
delay payment of taxes to future years.
| Is This Answer Correct ? | 7 Yes | 0 No |
Answer / praveenkumarmakam
This arises due to timeing differences between taxable
income and profit as per the books
in this permanent difference should be ignored
the temporary difference (i.e timing difference) considered
as deffered tax asset or liability
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