Revenue from operations ₹ 4,00,000; Cost of revenue from operations 60% of revenue from operations; Operating expenses ₹ 30,000 and Rate of income tax is 40%. What will be amount of profit after tax?

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₹ 78,000 Explanation: Given: Revenue from operations = ₹ 4,00,000 Cost of revenue from operations = 60% of revenue from operations = 4,00,000 $\times$ $\frac{60}{100}$ = ₹ 2,40,000 Operating expenses = ₹ 30,000 Tax rate = 40% 1. Calculate profit before tax: Profit before tax = Revenue − Cost of revenue − Operating expenses = 4,00,000 − 2,40,000 − 30,000 = ₹1,30,000 2. Calculate tax: Tax = 40% of profit before tax = 1,30,000 xx $\frac{40}{100}$ = ₹ 52,000 3. Calculate profit after tax: Profit after tax = Profit before tax − Tax = 1,30,000 − 52,000 = ₹ 78,000

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