By deferring taxes on the returns of an investment, the 
investor benefits in two ways. The first benefit is tax-
free growth: instead of paying tax on the returns of an 
investment, tax is paid only at a later date, leaving the 
investment to grow unhindered. The second benefit of tax 
deferral is that investments are usually made when a person 
is earning higher income and is taxed at a higher tax rate. 
Withdrawals are made from an investment account when a 
person is earning little or no income and is taxed at a 
lower rate.

deferred tax  is difference between two depreciation 
schedule one is according to companies act. and as per 
Income tax act. and always charged in P & L Appropreciation 
account and effect to computation of Income of a Company.