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What is deferred tax?

  1. A Tax arising from temporary differences between accounting profit and taxable profit
  2. B Tax paid after the due date
  3. C Advance tax paid in instalments
  4. D Tax withheld at source
Answer

Tax arising from temporary differences between accounting profit and taxable profit

Differences such as depreciation rates for books versus tax create deferred tax assets or liabilities that reverse in later periods.

All CA MCQs

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