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    Question

    Given the following information, calculate the Deferred

    Tax Asset (DTA) or Deferred Tax Liability (DTL) amount if the tax rate is 30%: Profits as per Income Tax: ₹55,000 Profits as per Books of Accounts: ₹45,000
    A DTA: ₹3,000 Correct Answer Incorrect Answer
    B DTL: ₹3,000 Correct Answer Incorrect Answer
    C DTA: ₹4,000 Correct Answer Incorrect Answer
    D DTL: ₹4,000 Correct Answer Incorrect Answer
    E No DTA/DTL arises Correct Answer Incorrect Answer

    Solution

    Deferred Tax Asset (DTA) arises when the book profit is less than the taxable profit. The difference in profits is ₹10,000 (₹55,000 - ₹45,000). The DTA is calculated as: DTA = Difference in Profits × Tax Rate = ₹10,000 × 30% = ₹3,000

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