On 11 September 2025, the Chanakya Chamber of Commerce (School of Management Sciences) organized a lecture on Deferred Tax Accounting for students of commerce and management. The session, conducted by Dr. B. Mahadevappa, provided an overview of the concept of deferred tax, focusing on the differences between taxable income and pre-tax accounting income, and how these differences create deferred tax assets and liabilities.
Dr. Mahadevappa began by presenting accounting as an information system and underlined its importance in financial reporting and decision-making. He revisited the accounting cycle, the Profit and Loss Account, and the Balance Sheet, describing their role as the core pillars of financial reporting.
A central theme of the lecture was the distinction between permanent and temporary differences. Examples of permanent differences included tax-free income, dividend income, fines, and disallowed expenses. Temporary differences such as depreciation were discussed in detail, illustrating how varying treatments under the Income Tax Act and Ind AS create deferred tax liabilities or assets. The recognition, measurement, and disclosure requirements under Ind AS 12 were explained, with references to the Companies Act (Sections 128–139) and other relevant standards (Ind AS 101–104).
The session concluded with a discussion on tax planning versus tax evasion, urging students to approach taxation with ethical and strategic considerations. By combining practical examples with regulatory insights, the lecture provided valuable exposure to the role of deferred tax in financial reporting and its implications for effective decision-making.
