All You Need to Know About Deferred Tax Asset & Deferred Tax Liability

Switch to Digit Insurance

Trusted by 2 crore Indians

1 Year Waiting Period

Health
Car
Third-party premium has changed from 1st June. Renew now

Bike
Commercial
COVID-19 covered

Travel
More

Registration Number

Car Owner Name

Mobile Number

+91

Enter Mobile Number to Proceed

+91

ENTER YOUR CAR NUMBER

DON'T KNOW YOUR CAR NUMBER?

renew digit policy

I agree to the Terms & Conditions

Registration Number

Vehicle Owner Name

Previous Policy Expiry

Not Expired

Expired

DON'T KNOW REGISTRATION NUMBER?

I KNOW MY REGISTRATION NUMBER

IT'S A NEW BIKE

RENEW DIGIT POLICY

I agree to the Terms & Conditions

Registration Number

IT'S A NEW BIKE

RENEW DIGIT POLICY

I agree to the Terms & Conditions

Which countries are you visiting?

Most Popular(You can select more than one)

Leaving date

Return date

I agree to the Terms & Conditions

As mandated by Spanish Authorities your travel insurance needs to extend 15 days after your trip ends.
We will extend your coverage period accordingly.

Pin Code

In case, you wish to buy a plan for your siblings, aunts, uncles or any other relatives, you can buy a separate plan for them.

Add Members you want to insure

Mobile Number

Port my existing Policy

or renew digit policy

You can select more than one member

-+ Max kids

(s)

Registration Number

Vehicle Owner Name

Mobile Number

+91

City

Mobile Number

+91

ENTER YOUR REGISTRATION NUMBER

DON'T KNOW YOUR REGISTRATION NUMBER

or renew digit policy

I agree to the Terms & Conditions

Balance Sheet Factors	Amount
Income/Revenue	₹1,00,000
Taxable income	₹98,000
Warranty claim expenses	₹2000
Tax payable (at 20%)	₹19,600

Balance Sheet Factors	Amount
Income/Revenue	₹1,00,000
Taxable income	₹1,00,000
Warranty claim expenses	Nil
Tax payable (at 20%)	₹20,000

Accounting Factors	Amount
Revenue for three years	30% of ₹70,000= ₹21000
Decrease in annual income	₹21000- ₹9000= ₹12000
Tax liability	30% of ₹12000= ₹3,600

Specifications	Difference (Book-Tax)	DTA/DTL
Income	₹2,00,000 (₹10,00,000-₹8,00,000)	-
Reduction	₹1,00,000 (₹2,00,000-₹1,00,000)	₹30,000 (30% of ₹1,00,000)
Payable sales tax	₹50,000 (₹50,000- ₹0)	₹15,000 (30% of ₹50,000)
Leave encashment	₹1,00,000 (₹2,00,000- ₹1,00,000)	₹30,000 (30% of ₹1,00,000)
DTA/DTL (closing balance)	-	₹15,000

What is Deferred Tax - Assets And Liabilities

What Is Deferred Tax?

What Is a Deferred Tax Asset?

What Is Deferred Tax Liability?

Example of Deferred Tax Assets and Liabilities

Balance Sheet of a Company

Income Tax Statement of the Same Company

Illustration on the Calculation of Deferred Tax Asset And Deferred Tax Liability

How Does DTA/ DTL Affect Tax Holidays?

What Is the Effect of Deferred Tax Asset And Deferred Tax Liability on MAT?

Frequently Asked Questions

✓ Does a company show higher tax paid when there is a creation of Deferred Tax Asset?

✓ Can continuous losses from business operations cause an increase in Deferred Tax Asset?

More article about Income Tax in India

Switch to Digit Insurance

Get our app