Treatment of Tax | Cash Flow Statement | Class 12th Accountancy | VCC | All possible Cases |

Provision of Tax
Tax Paid
Income Tax Refund
Treatment of Tax in Cash flow Statement

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If a piece of land is sold and the Company gains, Income tax on gain is identified with Investing Activity and therefore, is shown under Investing activities.

If a Company pays Dividend tax when Dividend is paid to shareholders. The Income tax so paid is identified with financing activity and therefore, is shown under Financing Activity.

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