Deferred tax asset and liability

Tax on profit as per profit and loss a/c is Tax Liability ( which is prepared based on companies Act)
tax on taxable income is current tax. ( as per income tax act).
ex: tax liability is 100
current tax is 60.
expenditure we are booking in our books is 100. but we are paying to govt is 60. balance is the liability in the hands of tax payer. Deferred tax liability is 35.
in reverse case we will get Deferred tax asset.

Deferred tax asset or liability refers to the over payment or reduced payment of tax due to the difference in tax treatmnet in books of accounts and income tax act. 

When profits as per tax laws is more than profits as per books of accounts, Deferred tax asset is required to be created. 

When profits as per tax laws is less than profits as per books of accounts, Deferred tax liability is required to be created.

Click below link for complete information with practical calculation

https://youtu.be/RGpQldmfuHw

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https://www.caclubindia.com/articles/meaning-of-deferred-tax-liability-asset-in-simple-words-13385.asp