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 cumulative deferred tax liability at the end of year 2 (2022-23)?

1. Year 1 deferred tax liability = ₹5,00,000 × 30% = ₹1,50,000. 2. Year 2 timing difference is again ₹5,00,000, adding ₹1,50,000. 3. Cumulative DTL = ₹1,50,000 + ₹1,50,000 = ₹3,00,000. _Source: ICAI BoS CA Intermediate Paper 1 (Advanced Accounting), Sept 2025 — Q.1(a), AS 22 Accounting for Taxes on Income._