With the process of provision we create the amount and set aside to payment for taxes in future as it is payable in short term future that's why it is called current liability.
Current Tax Liability is that tax amount which is actaully payable in current year.Deffered Tax liability is that amount of tax liability which is created due to difference in net income in income statement and income according to tax authorities.
yes
Yes, as tax is paid normally in next fiscal year so it is current liability and shown under current liability section
how to calculate provison for income tax
Accrued income tax (Income Tax Payable) is a current liability. When the tax is actually paid it is reported on the income statement as Income Tax Expense.
Provision for taxation is current liablity
If tax is still remains payable while close of books of accounts then it is a liability to be paid to tax authorities that's why shown under liability side of balance sheet as current liability.
Current Liability = sundry creditor+bank overdraft+ expenses payable+provision for tax,divident
In personal tax yes. In corporate, ther is both a current and deferredportion
Yes deffered tax liability is created due to difference in taxable income as well as actual income which needs to be adjusted in next fiscal year as it is for only one year that;s why it is current liability.
Yes deffered tax liability is created due to difference in taxable income as well as actual income which needs to be adjusted in next fiscal year as it is for only one year that;s why it is current liability.
tax liability