alleryStart learning →A permanent difference in accounting versus tax treatment gives rise to:
ANo deferred tax at all
BA deferred tax asset
CA deferred tax liability
DA revaluation reserve
Answer & Solution
Correct answer: A. No deferred tax at all
Items never chargeable or allowable for tax are permanent differences, which do not cause deferred tax.
Keep practising Ind AS 12 Income Taxes
Browse all Ind AS 12 Income Taxes questions for CA Final, or explore more Financialreporting topics.
Related questions
Deferred tax accounting is relevant to which accounting principle?Tax-related contingent liabilities, such as disputes with tax authorities, follow:An entity's accounting profit is Rs. 2,500 and the domestic rate is 30%. Tax at the domestThe average effective tax rate equals tax expense divided by:What can make tax expense differ from profit times the rate?A deferred tax asset reliant on future profits needs evidence disclosure when the entity hFor unrecognised subsidiary-investment liabilities, disclose the:For unrecognised deductible temporary differences and unused losses, disclosure covers the