Deferred income tax liability

Deferred income tax liability,

Definition of Deferred income tax liability:

  1. Excess of income tax amount shown on an income statement over the actual tax amount, which occurs when book-income exceeds taxable income. This excess is recognized as a liability in the taxpayers balance sheet, and is written off in the following accounting period.

Meaning of Deferred income tax liability & Deferred income tax liability Definition