Suppose we are getting 200% deduction under income tax on the purchase of machinery that is purchased by us for 100,000 rupees being useful life for 5 years. How will this affect the treatment of deferred tax assets and liability in year 1 to 5?

In the given scenario, where you are eligible for a 200% deduction under income tax on the purchase of machinery, it will impact the treatment of deferred tax assets and liabilities over the useful life of the machinery (5 years). Deferred tax assets and liabilities arise due to temporary differences between taxable income and accounting…...

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