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      Question

      XYZ Ltd. shows difference between written-down value of

      a depreciable asset in books (₹4 lakh) vs tax books (₹5.5 lakh). The corporate tax rate is 30%. Compute the deferred tax asset or liability.
      A ₹45,000 deferred tax liability Correct Answer Incorrect Answer
      B ₹45,000 deferred tax asset Correct Answer Incorrect Answer
      C ₹1,50,000 deferred tax liability Correct Answer Incorrect Answer
      D ₹30,000 deferred tax liability Correct Answer Incorrect Answer
      E None Correct Answer Incorrect Answer

      Solution

      • Temporary difference = ₹5.5L – ₹4L = ₹1.5L (more in tax), so DTL = ₹1.5L × 30% = ₹45,000.

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