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%. Profit before depreciation and tax in 2021-22 is ₹18,00,000. What is the total tax expense for 2021-22?

1. Current tax = (₹18,00,000 − ₹10,00,000) × 30% = ₹2,40,000. 2. Deferred tax liability for the year = ₹5,00,000 × 30% = ₹1,50,000. 3. Total tax expense = current tax + deferred tax = ₹2,40,000 + ₹1,50,000 = ₹3,90,000. _Source: ICAI BoS CA Intermediate Paper 1 (Advanced Accounting), Sept 2025 — Q.1(a), AS 22 Accounting for Taxes on Income._