Please solve this for me Opening Defferred Tax Assets = 212218/Closing WDV as per Books = 1675143/Closing WDV as per

IT Act = 1924406/Depreciation as per Books = 495432/Depreciation as per IT Act = 393269/What is the amount of Defferred tax asset to be recognized in current year, if any?

Posted about a year ago

CA SACHIN D JAIN CA, CS [ Scorecard : 501]

Please solve this for me Opening Defferred Tax Assets = 212218/Closing WDV as per Books = 1675143/Closing WDV as per IT Act = 1924406/Depreciation as per Books = 495432/Depreciation as per IT Act = 393269/What is the amount of Defferred tax asset to be recognized in current year, if any? Deferred tax asset / (liability) would be: Method 1 opening balance -- 212218 On difference on Depreciation (495432-393269) @ 30.9% Closing balance OR Method 2 Difference of WDV -31568

-- 243786

-- 1924406 less 1675143 249263 Deferred tax asset on above @ 30.9% = 77022 There is a difference between Deferred tax asset on the basis of above two methods. Suggested method is Method 2. Opening balance carried forward is not correct. Provided no other timing difference is there. Dear Nimit, Pl check what r u telling.

Second method described by me is based on Balance Sheet Approach of calculating Deferred tax asset or (Liability). In practice, the difference between the two i.e. WDV of assets as per books and WDV of assets as per Income tax is considered as the timing difference because of which the taxable income and accounting income differ. Hence, Difference of both is considered for calculating Deffered tax asset / (liability). Hope you will be able to understand or clarify me, if I am not correct.

Posted 10 months ago

NIMIT MEHTA Audit manager [ Scorecard : 216]

yes what you are saying is exactly correct , but balance sheet approach the diffrence you calculated of rs 77022/- is closing DTA is what is was saying and the diffrence of (212218-77022) (openig DTA -closing DTA) will be treated as income in income statement. rest all is correct in your anser, i was a bit confused and yes my above anser is not correct i accept it sorry.

Posted 10 months ago

DHRUMIL ca final [ Scorecard : 32]

but sir if there is capital gain (long term) and certain deduction u/s40(related with non-deduction of tds) and also dividend income then will it affect the computation of deferred tax. Suppose in the A.Y.10-11 Profit as per books .:500000 Depreciation as per companies act.:100000 Depreciation as per income tax .:110000 LTCG.:10000 Dividend income.:5000 Expense disallowed u/s 40.:20000 then how the deferred tax wil be calculated??? and suppose in the next year there is loss i.e A.Y.11-12 Loss as per books of accounts.:100000

Depreciaiton as per companies act.:10000 Depreciation as per income tax act:15000 then what will be effect in deferred tax calculation??

Posted 10 months ago

CA SACHIN D JAIN CA, CS [ Scorecard : 501]

To resolve your query, deferred tax asset / (liability) for AY 10-11 has been calculated below: 1) Opening balance of deferred tax asset / (liability) Rs. NIL 2) On Difference in Depreciation ( @ 30.90% of Rs. 100000-110000) Rs. (3090) 3) Long Term Capital Gain (Permanent Difference) Rs. NIL 4) On Disallowance u/s 40 for non-deduction of TDS (Permanent Diff) Rs. NIL 5) On Dividend Income (Permanent Difference) Rs. NIL 6) Closing Balance (1+2+3+4+5) Rs. (3090) Deferred Tax Asset / (Liability) for AY 11-12 1) Opeing Balance Rs. (3090) 2) On Difference in Depreciation ( @ 30.90% of Rs. 10000-15000) Rs. (1545) 3) Closing Balance (1+2) Rs. (4635) Notes: a) Long Term Capital Gain is a term used in Income Tax Act. Such a term will not be found in the Companies Act. Hence, this term has been understood accordingly. Further, LTCG, being an item as per Income Tax Act, is of a permanent nature, hence, no deferred tax asset / (liability) will arise on the same. b) Disallowance u/s 40 due to non-deduction of TDS is considered to be of a permanent nature, on the basis of assumption that the amount of TDS will not be deducted in future years and consequently, will not be paid to the Government. If it is assumed that the amount of TDS will be deducted and paid in future years, then the amount of expenses disallowed u/s 40 will be considered as a temporary difference and Deferred Tax asset will arise on the same. c) Dividend received on shares of a Company is exempt from Income Tax and hence, is in the nature of permanent difference.

Posted 10 months ago

Originally posted by : sachin d jain To resolve your query, deferred tax asset / (liability) for AY 10-11 has been calculated below:

Aparna Raja K.C Student [ Scorecard : 486]

1) Opening balance of deferred tax asset /

(liability)

Rs. NIL

2) On Difference in Depreciation ( @ 30.90% of Rs. 100000110000) Rs. (3090) 3) Long Term Capital Gain (Permanent Difference) Rs. NIL 4) On Disallowance u/s 40 for non-deduction of TDS (Permanent Diff) Rs. NIL 5) On Dividend Income (Permanent Difference) 6) Closing Balance (1+2+3+4+5)

Rs. NIL

Rs. (3090)

Deferred Tax Asset / (Liability) for AY 11-12

1) Opeing Balance (3090) 2) On Difference in Depreciation ( @ 30.90% of Rs. 1000015000) Rs. (1545) 3) Closing Balance (1+2)

Rs.

Rs. (4635)

Notes: a) Long Term Capital Gain is a term used in Income Tax Act. Such a term will not be found in the Companies Act. Hence, this term has been understood accordingly. Further, LTCG, being an item as per Income Tax Act, is of a permanent nature, hence, no deferred tax asset / (liability) will arise on the same. b) Disallowance u/s 40 due to non-deduction of TDS is considered to be of a permanent nature, on the basis of assumption that the amount of TDS will not be deducted in future years and consequently, will not be paid to the Government. If it is assumed that the amount of

TDS will be deducted and paid in future years, then the amount of expenses disallowed u/s 40 will be considered as a temporary difference and Deferred Tax asset will arise on the same. c) Dividend received on shares of a Company is exempt from Income Tax and hence, is in the nature of permanent difference.
Good Work:)

HOME INCOME TAX RATES TDS RATES 89(1) RELIEF GRATUITY FY 10-11 89(1) GRA FY 11-12

INCOME TAX RATES 12-13 INDIVIDUAL AOP BOI HUF SR CITIZEN VERY SENIOR CITIZEN

As per the Finance Act, 2011, income-tax rates for the financial year 2011-2012 (i.e. Assessment Year 2012-2013) for individual,BOI,AOP,HUF is given as under.

RATES OF INCOME-TAX

A. Normal Rates of tax:

1. Where the total income does not exceed Rs. 1,80,000/-.

Nil

2. Where the total income exceeds 10 per cent of the amount by which the total income exceeds Rs. Rs. 1,80,000 but does not 1,80,000/exceed Rs. 5,00,000/-

3. Where the total income exceeds Rs. 32,000/- plus 20 per cent of the amount by which the total income Rs. 5,00,000/- but does not exceeds Rs. 5,00,000/-. exceed Rs. 8,00,000/-. 4. Where the total income exceeds Rs. 92,000/- plus 30 per cent of the amount by which the total income Rs. 8,00,000/-. exceeds Rs. 8,00,000/-. B. Rates of tax for a woman, resident in India and below sixty years of age at any time during the financial year:

1. Where the total income does not exceed Rs. 1,90,000/-.

Nil

2. Where the total income exceeds 10 per cent, of the amount by which the total income exceeds Rs. Rs. 1,90,000 but does not 1,90,000/exceed Rs. 5,00,000/-. 3. Where the total income exceeds Rs. 31,000/- plus 20 per cent of the amount by which the total income Rs. 5,00,000/- but does not exceeds Rs. 5,00,000/-. exceed Rs. 8,00,000/-. 4. Where the total income exceeds Rs. 91,000/- plus 30 per cent of the amount by which the total income Rs. 8,00,000/-. exceeds Rs. 8,00,000/-.

C. Rates of tax for an individual, resident in India and of the age of sixty years or more but less than eighty years at any time during the financial year:

1. Where the total income does not exceed Rs. 2,50,000/-.

Nil

2. Where the total income exceeds 10 per cent, of the amount by which the total income exceeds Rs. Rs. 2,50,000 but does not 2,50,000/exceed Rs. 5,00,000/-. 3. Where the total income exceeds Rs. 25,000/- plus 20 per cent of the amount by which the total income Rs. 5,00,000/- but does not exceeds Rs. 5,00,000/-. exceed Rs. 8,00,000/-.

4. Where the total income exceeds Rs. 85,000/- plus 30 per cent of the amount by which the total income Rs. 8,00,000/-. exceeds Rs. 8,00,000/-. D. In case of every individual being a resident in India, who is of the age of eighty years or more at any time during the financial year:

1. Where the total income does not exceed Rs. 5,00,000/-

Nil

2. Where the total income exceeds 20 per cent of the amount by which the total income exceeds Rs. Rs. 5,00,000/- but does not 5,00,000/exceed Rs. 8,00,000/3. Where the total income exceeds Rs. 60,000/- plus 30 per cent of the amount by which the total income Rs. 8,00,000/exceeds Rs. 8,00,000/-

1.

Surcharge on Income tax: There will be no surcharge on income tax payments by individual taxpayers during FY 2011-12 (AY 2012-13). 2. Education Cess on Income tax: The amount of income-tax shall be increased by Education Cess on Income Tax at the rate of two percent of the income-tax. 3. Additional surcharge on Income Tax (Secondary and Higher Education Cess on Income-tax):From Financial Year 2007-08 onwards, an additional surcharge is chargeable at the rate of one percent of income-tax (not including the Education Cess on income tax). 4. Education Cess, and Secondary and Higher Education Cess are payable by both resident and non-resident assessees.

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kajal 29 weeks ago renwual Report Reply 0

royal auto craft 27 weeks ago Sir, ours is PVT ltd company. turnover is 99.99 lakhs. NetProfit Rs. 23652.00 ITR not yet filed. Pls let us know that how much penalty will comes to file itr now ittself? Report Reply 1 reply active 27 weeks ago +1

RAJA BABU79p 27 weeks ago You must have audit report dated on or before 30.09.2011 so that late audit penalty is not applicable . for late tax deposit you have to pay interest u/s 234A,B,C which is 1% per month Report Reply 0

Krishna Prasad Roy 25 weeks ago i have recently start a Education Institute ( Collage ) which is registered under society but it is started by individual so, how can i maintain accounts

Report Reply 0

Rajaendranpillai 25 weeks ago Till date i have not received my refund my pan no is AMEPP9177B FOR The year of 2010-2011 Report Reply -1

P.Ravi Babu 24 weeks ago The employee's date of birth is 05.03.1952. He retires on 31.03.2012. The advantage of Sr.citizensip can be extended to such employees for the financial year 20011-2012. Report Reply

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