Question

Provision for Tax for the year ended March 31, 2025 and 31 March 2024 were ₹ 3,00,000 and ₹ 2,80,000 respectively. During the year Tax paid was ₹ 2,50,000. Determine the amount of Tax proposed during the year by the firm.

Options

• ₹ 3,00,000

• ₹ 2,30,000

• ₹ 2,80,000

• ₹ 2,70,000

Answer 1

₹ 2,70,000

Explanation:

Given:

Provision for Tax (31 March 2025) = ₹ 3,00,000 (Closing)

Provision for Tax (31 March 2024) = ₹ 2,80,000 (Opening)

Tax Paid during the year = ₹ 2,50,000

Provision Made = Tax Paid + Closing Provision − Opening Provision

Provision Made = 2,50,000 + 3,00,000 − 2,80,000

Provision Made = 2,70,000