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CA Inter doubt

What will be the treatment for provision for income tax debited to p and l account in cash flow from operating activities under indirect method

Asked by Shiva23 Sept 2025802 views

1 answer

  1. Akil · 23 Sept 2025

    First of all provision for tax in current year is a non cash expenditure which reduces my current year net profit but there will be no actual cash outflow in my current year cash account, So add back the provision for tax in current year in operating activities

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