alleryStart learning →A new deferred tax asset of Rs 40,000 is recognised and current tax is Rs 1,50,000. What is the tax expense?
ARs 1,90,000
BRs 40,000
CRs 1,10,000
DRs 1,50,000
Answer & Solution
Correct answer: C. Rs 1,10,000
A new deferred tax asset is a credit that reduces tax expense, so 1,50,000 less 40,000 is Rs 1,10,000.
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