Treatment of interest on investments when we calculate of tax

Others 180 views 1 replies

When as a company we receive interest on investments,

We first give tax on profit(not including int on investments) and then add interest on investments

Or

We add the interest on investments, then we have total profit on which we give tax

I'm in Bcom sem 4 and we have given here tax deducted after excluding interest on investments.

I'm confused.

Replies (1)
Actually tax is paid on all income inlcluding income feom investment.

But while calculating value of goodwill we will take profit excluding income from investment becaue there is no goodwill in such income.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register