While Preparing a Comparative Statement of Profit and Loss, the following information was available:
Tax Rate= 40%
Profit after Tax on 31.3.2020 = ₹1,68,000
Profit before Tax on 31.3.2021 = ₹1,90,000
What is the Percentage Change in Profit after tax?
Answer & explanation
Correct answer: option 3
The correct answer is option 3- 32.14%.
Tax in 2021= 1,90,000*40/100
= ₹76,000
Profit after Tax on 31.3.2021 = 1,90,000-76,000
= ₹1,14,000
Profit after Tax on 31.3.2020 = ₹1,68,000
Change in tax = 1,68,000-1,14,000
= ₹54,000
% change in tax = 54,000/1,68,000 x 100
= 32.14%