In a Cash Flow Statement, Income Tax Paid should generally be disclosed as a cash flow from ______

Under AS-3 and Ind AS 7, cash flows arising from taxes on income must be separately disclosed and are classified as cash flows from Operating Activities. This is because taxes are generally associated with the overall profit-generating activities of the entity. However, the standard provides an exception: if the tax cash flow can be specifically identified with an Investing activity (e.g., capital gains tax on the sale of a factory) or a Financing activity, it should be classified accordingly.    Please note – The option D may look correct too, however the accounting standards mandate that tax be shown as Operating by default. It is only moved if it can be specifically identified with another activity; it is not apportioned as a standard rule