Скачать с ютуб Adjustment of special items in the final account of the company part 3/deferred Tax/ Malayalam в хорошем качестве

Adjustment of special items in the final account of the company part 3/deferred Tax/ Malayalam

Adjustment of special items in the final account of the company, this video contains current tax and deferred tax adjustment in the financial statement of the company. part 1:    • Adjustment of special item in final a...   Part 2:    • Adjustment of special items in final ...   Current Tax:- Current tax is the amount of income tax determined to be payable (recoverable) in respect of the taxable income (tax loss) for a period. Taxable income (tax loss) is the amount of the income (loss) for a period, determined in accordance with the tax laws. Deferred Tax The tax effect on the timing differences is termed as deferred tax which literally means taxes that are deferred. Timing Difference The company derives its book profits from the financial statements prepared in accordance with the rules of companies act and it calculates its taxable profit based on the provision of the Income-tax Act. There is a difference between the book profit and taxable profit because of certain items which are specifically allowed and disallowed for tax purpose. This difference between the book and the taxable income or expense is known as timing difference and it can be either: 1. Temporary Difference – Differences between book income and tax income which are capable of reversing in the subsequent period 2. Permanent Difference – Differences between book income and tax income which are not capable of reversing in the subsequent period Deferred tax assets A deferred tax asset is an asset to the Company that usually arises when either the Company has overpaid taxes or paid advance tax. Such taxes are recorded as an assent on the BS and are eventually paid back to the Company or deducted from future taxes These are created because of the timing difference between the book profit and the taxable profit. This is because there are some items which are allowed to be deducted and other not deducted from the taxable profits Deferred tax liability Deferred tax liabilities arise when the company has paid less tax in the current year. But it reverses in the future years. Entry:- Deferred Tax Account a/c Dr To Deferred tax liability Deferred Tax liability is shown in the BS under ‘Non-current liability’