alleryStart learning →A provision of Rs. 100 for gratuity is deductible only when paid. At a 25% rate, the deferred tax asset is:
ARs. 100
BRs. 75
CRs. 25
DRs. 125
Answer & Solution
Correct answer: C. Rs. 25
Tax base of the liability is nil, so the deductible difference is Rs. 100, and 25% of 100 gives a deferred tax asset of Rs. 25.
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