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Deffered Tax is the amount the payment of which you delayed to pay in future. There are many reasons for deffered taxation. There are so many expanses and incomes which are not allowed by taxation department of Government but we enter as income and expenses in our financial statements because in accounting they are allowed as income or expense and that's why in the end the net income calculated by company and tax department is rearely reconsile due to problems mentioned above and due to that tax calculated by company is different the tax calculated by tax departments that's why deffered taxation is use to adjust tax between entity and tax department.

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Q: What is deferred tax?
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Related questions

Are all temporary differences that exist at balance date recognised as deferred tax assets or deferred tax liabilities?

yes - either a deferred tax asset (DTA) or a deferred tax liability (DTL).


What is tax deferred wages?

Tax-deferred wages is a reference to income of which there is no tax withholding. The taxes on the wages will be deferred until the end of the year.


Tax treatment of deferred revenue expenditure?

What Did you mean by deferred revenue tax


Where can one find deferred tax assets?

Deferred tax assets are when its determined that the company will have positive accounting income during the fiscal period. After that, the deferred tax assets can be applied.


What is wage tax?

Tax-deferred wages is a reference to income of which there is no tax withholding. The taxes on the wages will be deferred until the end of the year.


Why would one need a deferred tax liability?

Deferred tax liability is necessary when a company's balance sheets fail to reflect what they are claiming on their tax returns. This can occur, for example, in cases of deferred payments from customers.


If future income tax liability is deferred income tax?

If that is what the amount is that you may owe and that is what you want to call it YES it would be your deferred income tax amount.


What is a deferred tax?

Is the amount you delayed to pay for tax in future.


Is a income tax benefit account a contra account of income tax expense?

The answer is no.A contra account to the "Income Tax Benefit (Deferred)" would be a "Income Tax Charge (Deferred)".


What are some examples of items that cause deferred tax assets or deferred tax liabilities?

Examples of items that can cause deferred tax assets include net operating loss carryforwards, tax credits, and deductible temporary differences such as depreciation or bad debt expense. Examples of items that can cause deferred tax liabilities include taxable temporary differences such as accelerated depreciation or prepaid revenues. Additionally, changes in tax rates can also give rise to deferred tax liabilities or assets.


What exactly is a deferred tax?

A deferred tax is one that is delayed until you can pay it later. In some jurisdictions, you will not have to pay the tax if you leave the jurisdiction permanently and move overseas.


Define deferred tax?

Deferred tax is the future tax liability or assets. It could either be tax liability or tax assets totally depending on the temporary difference which means the difference between book value and tax valued.