Problem of carrying forward tax assets comes to revisit companies in December quarter

Most loss making firms is not going to flip round throughout the stipulated time attributable to Covid, instantly impacting their skill to set off future tax, mentioned tax specialists.

Synopsis

Many firms will now need to take an impairment cost or write off a lot of the losses incurred by these acquired companies which they’ve accounted for as deferred tax property (DTA) on the stability sheet to offset in opposition to future tax.

Mumbai: The problem of what to do with the tax property is about to hit a number of firms that had purchased out bankrupt firms by the insolvency and chapter course of.Many firms had purchased out property or firms by the IBC course of however had been hit additional as a result of Covid pandemic. Most firms noticed their gross sales and web income getting impacted as a result of pandemic.The problem will come to revisit the businesses within the December quarter, mentioned

ET Bureau

Dec 13, 2020, 05:17 PM IST

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