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what is mean by differed tax?
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Answer / om. maliya
deferred tax is difference between two depreciation
schedule one is according to companies act. and as per
Income tax act. and always charged in P & L Appropreciation
account and effect to computation of Income of a Company.
| Is This Answer Correct ? | 17 Yes | 3 No |
Answer / prasanna
By deferring taxes on the returns of an investment, the
investor benefits in two ways. The first benefit is tax-
free growth: instead of paying tax on the returns of an
investment, tax is paid only at a later date, leaving the
investment to grow unhindered. The second benefit of tax
deferral is that investments are usually made when a person
is earning higher income and is taxed at a higher tax rate.
Withdrawals are made from an investment account when a
person is earning little or no income and is taxed at a
lower rate.
| Is This Answer Correct ? | 10 Yes | 3 No |
Answer / deviyal
Deferred tax is tax impact during a financial year due to
timing difference.
| Is This Answer Correct ? | 2 Yes | 2 No |
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