Read the following passage and answer the question.

A company has a net profit after tax of ₹5,60,000 in the current year 2022. Company write off the bad debts of ₹5,000 during the year. Depreciation charged on fixed assets is ₹40,000. Company sold the investments and a gain of ₹10,000 arise. The following details are given-

How much tax is paid by the company?

₹16,000

The correct answer is option 1- ₹16,000

Provision for tax for the year 2021 means ₹16,000 will be treated as payment of tax and deducted from the cash generated from operating activities to calculate the net cash flow from operating activities.