There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below.

Assertion (A):  Deferred Liabilities and Deferred Tax Assets are shown at the net amount.
Reason (R):  Schedule lll of the Companies Act, 2013 prescribes that Deferred Tax Liabilities and Deferred Tax Assets are shown as a line item at net value, i.e., Deferred Tax Liabilities less Deferred Tax Assets or vice versa.

Both, Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion(A).

Deferred tax assets/liabilities are always non-current. This is in accordance with Schedule III of the Companies Act. Deferred tax liabilities are created when income tax expense (income statement item) is higher than taxes payable (tax return), and the difference is expected to reverse. DTL is the amount of income taxes payable in future periods due to temporary taxable differences.