Deferred tax

if you reduce income tax depreciation with companies act depreciation.. you will get deferred Tax..

Generally...depreciation as per tax records will be high comparing to depreciation provided under accounting records....as in ur case...the depreciation under tax records is less comparing to depreciation provided in accounting records...
Thus it can be assumed as a reversal of Deferred Tax Liability...as in the earlier stages deprecation in the tax records will be high comparing to accounting...thus it will results in origination of Deferred Tax Liability...

Solution is treat such diff between tax records depreciation and accounting records depreciation reversal of DTL..

What will be the effect for Profit on sale of asset??

As such profit is blocked in the Tax records...there exists the permanent difference of accounting income and taxable income...i.e. it is a permanent difference...as it should be ignored for determining Deferred Tax as only timing difference which could be reversed in the subsequent years are been recognised as DTA/DTL...

Solution is ignore DT of such profit earned...as it is a permanent difference.