DTA (Deferred Tax Asset) DTL (Deferred Tax Liability)
If In The Current Year We Have To Pay More Tax But In Future We Will Get Tax Benefit We Create Dta If In The Current Year We Have To Pay Less Tax As Computed By Co Act Then We Create Dtl
   
JOURNAL ENTRY JOURNAL ENTRY
DTA (Non Current Assets)….Dr P& L  Dr
                          To P&L To DTL (Non Current Liability)
   
Examples Examples
1 Depreciation as Per Income Tax is less than Companies Act Depreciation as Per Income Tax is more than Companies Act

2 Section 40(A)

30% Of Expense On Which Tds Not Deposited Allowed In Year When Actually Deposited)

 

3. Section 43B

Interest On Bank Loan/Bonus/Pf Not Paid Till Return Filing Date 30 Sept,If Paid After 30 Sept,Allowed Next Year

 

 

 

  1. Accounts and Finance
  2. Step 4 Balance Sheet Finalization Procedure
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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