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: ₹2,50,000Solution
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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