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
B ₹45,000 deferred tax asset
C ₹1,50,000 deferred tax liability
D ₹30,000 deferred tax liability
E None
Practice Next

Hey! Ask a query