Question
A company earns ₹15 lakh net profit before tax. It
donates ₹1 lakh to PM CARES Fund and claims depreciation of ₹2 lakh. What is taxable income under Income Tax Act?Solution
Net Profit: ₹15 lakh Less Depreciation: ₹2 lakh Less Donation (100% deductible): ₹1 lakh Taxable Income = ₹12 lakh
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