Deferred tax liability defines that income expense amount of a company which is not paid to the government but is expected to be paid in the future. It is mentioned in the company’s income statement and arises due to less payment than what it shows on the sheet in the reporting time or inability of the company to pay the income tax department. This will make the company prone to frequent auditing by the income tax department. On the other hand, deferred tax assets are the condition when a company actually pays more amount in taxes to the government than they show as expense in a reporting time period.
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What is Deferred Tax Liability and Deferred Tax Assets?
