Tax Paid Formula

Tax Paid Formula

Tax paid during the year can be calculated by the following formula.

Tax Paid = opening Tax payable + Tax levied during Year – Closing Tax payable

Example

Opening – Tax payable = 25,000

Closing – Tax Payable = 40,000

Tax Levied- Raw material= 50,000

How much tax paid during the year

Solution

Tax Paid = opening Tax payable + Tax levied during Year – Closing Tax payable

=25000+50,000-40,000

=35000 (Tax paid during the year)