ACCOUNTING FOR TAXES ON INCOME- ACCOUNTING STANDARD 22- TREATMENT OF DEFERRED TAX ASSETS (DTA) AND DEFERRED TAX LIABILITIES (DTL) FOR COMPUTATION OF CAPITAL

As creation of DTA or DTL would give rise to certain issues impacting the balance sheet of the Company, it is clarified that the regulatory treatment to be given to these issues are as under :-

• The balance in DTL account will not be eligible for inclusion in Tier I or Tier II capital for capital adequacy purpose as it is not an eligible item of capital.
• DTA will be treated as an intangible asset and should be deducted from Tier I Capital.