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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: ₹1,00,000 Profits as per Books of Accounts: ₹2,50,000
      A DTA: ₹45,000 Correct Answer Incorrect Answer
      B DTL: ₹45,000 Correct Answer Incorrect Answer
      C DTA: ₹30,000 Correct Answer Incorrect Answer
      D DTL: ₹30,000 Correct Answer Incorrect Answer
      E No DTA/DTL arises Correct Answer Incorrect Answer

      Solution

      Deferred Tax Liability (DTL) arises when the profits as per books of accounts are higher than the profits as per income tax. The difference in profits is ₹1,50,000 (₹2,50,000 - ₹1,00,000). The DTL is calculated as: DTL = Difference in Profits × Tax Rate = ₹1,50,000 × 30% = ₹45,000

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