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 2023-24 is ₹25,00,000 (tax depreciation nil). What is the total tax expense for 2023-24?

1. Current tax = taxable income × 30% = ₹25,00,000 × 30% = ₹7,50,000 (no tax depreciation this year). 2. The timing difference reverses, so the deferred tax liability is reduced by ₹1,50,000. 3. Total tax expense = ₹7,50,000 − ₹1,50,000 = ₹6,00,000. _Source: ICAI BoS CA Intermediate Paper 1 (Advanced Accounting), Sept 2025 — Q.1(a), AS 22 Accounting for Taxes on Income._