Amber Ltd bought a building for ₹20,00,000 (life 4 years, nil scrap). Accounting depreciation is straight-line; tax depreciation is 50% in year 1, 50% in year 2 and nil thereafter. Tax rate 30%. What is the timing difference in year 1?

1. Timing difference = tax depreciation − accounting depreciation. 2. = ₹10,00,000 − ₹5,00,000. 3. = ₹5,00,000 (tax depreciation is higher, so taxable income is lower this year). _Source: ICAI BoS CA Intermediate Paper 1 (Advanced Accounting), Sept 2025 — Q.1(a), AS 22 Accounting for Taxes on Income._