Under AS 22 'Accounting for Taxes on Income', deferred tax is recognis…

Question

Under AS 22 'Accounting for Taxes on Income', deferred tax is recognised on which of the following?

Accepted Answer

A. Timing differences that originate in one period and reverse later

1. AS 22 distinguishes timing differences from permanent differences.
2. Deferred tax is recognised only on timing differences, which originate in one period and reverse in one or more later periods.
3. Permanent differences never reverse, so they carry no deferred tax.
_Source: ICAI BoS CA Intermediate Paper 1 (Advanced Accounting), Sept 2025 — Q.1(a), AS 22 Accounting for Taxes on Income._

Answer

Permanent differences that never reverse in any subsequent period

Answer

Only the current year's tax actually payable to the authorities

Answer

The difference between accounting gross profit and net profit