Balance sheet approach of calculating deferred tax asset/ lb

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Nikita Kulkarni (Querist)
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08 September 2016 Can somebody give an easy example of balance sheet approach of calculating deferred tax asset/ liability ?
For example,
WDV as per BOOKS : 1085291.09
WDV as per Income Tax Act : 655305
which amount will appear where in balance sheet? why is there difference when we calculate Deferred tax asset/liability by comparing depreciation as per books and depreciation as per Income Tax Act?

Vivek Hebbar

Vivek Hebbar (Expert)
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08 September 2016 You need to read and understand AS-22 for the concept of deferred tax. In the given example, you need to apply the current corporate tax rate on the difference of the two figures. The resultant amount will be Deferred Tax Liability.