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?

32.14%

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%