What is defered tax asset?

-This term is an improvised terminology for the term deferred tax credit. It primarily arose from the timing differences of certain expenditure recorded in the accounts but not allowed in computing taxable income. For example, the accounting depreciation could be higher than tax admissible depreciation and the differential is subsequently available in following years. Thus, while tax is paid on a higher taxable income in earlier years, this differential is available for adjustment in future which reduces the tax liability. Other examples are provisions made in the accounts but allowed for tax purposes only on actual payment basis which creates a tax credit for future. Since it may not always be a deferred tax credit and could be an expenditure amount for future reduction in tax, the term deferred tax asset more appropriately describes the available credits for determining future taxable income.An asset that is used to reduce the amount of tax that a company will have to pay in a later tax period. It is often associated with a loss carryover, and is used as a future write-off if the next tax period is expected to produce positive earnings.
Please Refer Accounting Standard 22 issued by the Institute of Chartered Accountants of India to know detail about DTA & DTL