Calculation of Deferred Tax Liability

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This discussion addresses a discrepancy in calculating deferred tax liability. The user's calculation, based on the difference between book depreciation and IT depreciation, results in a deferred tax liability of Rs. 41,241. However, their CA calculated it as Rs. 40,082. The consensus leans towards the user's calculation being correct, suggesting it should be Rs. 41,641 when considering a 4% cess, and potentially a deferred tax asset due to lower depreciation under IT Act rules.

TARIQUE RIZVI

TARIQUE RIZVI (Querist)
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23 April 2021 Respected Sir Please guide me and oblige.

Depreciation as per books Rs. 15,01,558 Dr (a)
Depreciation as per IT Rs 13,41,399 Cr (b)
Credit Balance Rs (-) 160,159 (b-a) = C
Deferred Tax Liability Net Rs 41,241 ( 25.75% of c )
But the CA has calculated as of Rs 40,082

Please guide and let me know which one is correct ?