Find income tax paid by X Ltd. for operating activities, based on information given in the following extract of Balance Sheet of X Ltd.
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Extract of Balance Sheet of X Ltd. |
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Particulars |
Note No. |
31.3.21 |
31.3.20 |
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Short term Provision (Provision for Tax) |
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95,000 |
80,000 |
Additional information :
Income Tax paid during the year includes ₹ 15,000 on account of dividend tax.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → ₹ 65,000
The provision for tax made last year is taken as paid during the current year.
Total tax paid during the year = opening provision = ₹80,000
Tax on dividend is a financing outflow along with the dividend, so it is taken out.
Income tax paid for operating activities = ₹80,000 − ₹15,000 = ₹65,000
NCERT (2026-27 edition):
NCERT (2026-27 edition):
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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