Taxes on Income

abhishreshthaa

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Taxes on Income

Current tax is determined as the amount of tax payable in respect of taxable income for the period.


Deferred tax is recognised, subject to the consideration of prudence,on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.


Deferred tax assets are not recognised on unabsorbed depreciation and carry forward of losses unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.
 
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