Deferred Tax Asset & Deferred Tax Liability: A Complete Guide

Deferred Tax Liabilities and Assets (AS 22): Deferred Tax Liability (DTL): Arises when taxable income is lower than accounting income due to temporary differences. These differences will reverse in future periods, leading to higher tax payments. Taxable Income <Accounting Income. The above difference will reverse in tax years yet to come. Deferred Tax Asset (DTA): Occurs when...