Deferred tax liability

1) 1st calculate total depreciation as per companies Act.

2) calculate total depreciation as per IT Act.

3) Excess Depreciation as per IT Act  i.e. (2) - (1)

4) Deferred Tax Liability = (3) * 30.9%

The above Deferred Tax Liabilty  is only provision should be made during the year

In the above amount Add Opening balance of Deferred Tax Liability and you will get closing Balance of Deferred Tax Liabilty

Thanks Riddhi!