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Cash flow statement

Accountancy

How to treat the tax item in case of net profit before tax and after tax??

Sainisha Ramesh

CA Inter

★ 200

19-May-21 21:06

534

Answers (4)

You can start with net profit before tax. Or start with net profit after tax and add back tax component.

CA Suraj Lakhotia

Admin

19-May-21 22:12

Sir, for net profit before tax, can we deduct the tax component??

Thread Starter

Sainisha Ramesh

CA Inter

★ 200

19-May-21 22:57

Thread Starter

Sainisha Ramesh

Sir, for net profit before tax, can we deduct the tax component??

Since, you'll start with net profit before tax, tax will be deducted only once later after adjusting for changes in Working capital as taxes paid before arriving at final figure of Cash flow from operating activities

Sahibdeep Singh

CA Inter

★ 14K+

21-May-21 11:27

Thank you so much sir for clearing my doubt.

Thread Starter

Sainisha Ramesh

CA Inter

★ 200

21-May-21 11:56