READ THE FOLLOWING INFORMATION AND ANSWER THE GIVEN QUESTION.

ABC Ltd is running an advertising business. Encouraged by substantial profits, company decided to donate ₹1,00,000 to an old age home in the locality where the company had its head office. Following particulars are obtained from the company's books:

What is the profit after tax for the year 2021?

₹5,20,000

The correct answer is option 2- ₹5,20,000.

Total revenue 2021 = 18,00,000 + 60,000
                               = ₹18,60,000
Total expenses = ₹10,40,000
Profit before tax = Total revenue - Total expenses
                           = 18,60,000-10,40,000
                           = ₹8,20,000

Profit after tax = Profit before tax  - Income tax
                        = 8,20,000- 3,00,000
                        = ₹5,20,000