Recognition of deferred tax asset/liablity- balance sheet approach

This query is : Resolved

CA Abhishek Singh (Querist)
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31 August 2023 Hello everyone,
following details are available as on 31.03.23

Cl wdv as per books : 100 cr
cl wdv as per IT acr : 92 cr

applicable tax rate : 25%. Assuming no other timing diff other than depreciation

i am stuck in computation of closing deferred tax asset/liablity

my understanding is since co has claimed higher depreciation and paid less tax going forward tax liability is going to be higher so direct tax liablity shall be created

closing value of DTL = 8 cr * 25% =2 cr

2cr should appear in balance sheet after adjusting opening balance

is my understanding correct ??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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31 August 2023 Yes, you are right...

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