New Register for Workshop on How to start for NABARD 2025 (Stepwise Plan) - Apr 26, 7 PM

    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

    Practice Next