While Preparing a Comparative Statement of Profit and Loss, the following information was available. Calculate the rate of tax from this.
Profit before Tax 31.3.2021 = ₹2,80,000
Profit after Tax 31.3.2021 = ₹1,68,000
Answer & explanation
Correct answer: option 3
The correct answer is option 3- 40%.
TAX = 2,80,000 - 1,68,000
= ₹1,12,000
Rate of tax = (1,12,000/2,80,000) x 100
= 40%