Question

A company has net profit before tax ₹4,00,000. Tax rate is 30% and deferred tax expense is ₹10,000. Net profit after deferred tax adjustment will be:

Q: Answer-A company has net profit before tax ₹4,00,000. Tax rate is 30% and deferred tax expense is ₹10,000....

Tax expense current 30 of 4,00,000 1,20,000. Deferred tax expense 10,000 increases total tax to 1,30,000. PAT 4,00,000 1,30,000 2,70,000. Wait re-evaluate The correct math gives 2,70,000 choice A. Correction Answer A. 2,70,000. Corrected Solution Current tax 1,20,000 add deferred tax expense 10,000 total tax 1,30,000. PAT 4,00,000 1,30,000 2,70,000.