Question : The table given below represents the cost, revenue, and tax rate for XYZ Limited for a period of 8 years. Cost and revenue are given in INR '000 crore.
| Year | Revenue | Cost | Tax rate |
| Y1 | 800 | 600 | 20% |
| Y2 | 1100 | 850 | 22% |
| Y3 | 1200 | 900 | 22% |
| Y4 | 1200 | 950 | 25% |
| Y5 | 1350 | 1050 | 30% |
| Y6 | 1500 | 1200 | 30% |
| Y7 | 1600 | 1240 | 33% |
| Y8 | 1850 | 1400 | 15% |
Profit for any year = Revenue – Cost
Profit after tax for any year = profit of that year – tax of that year
Tax on any year = tax rate of that year $×$ profit of the year
How much tax (in INR '000 crore) was paid by XYZ Limited in Y7?
Option 1: 90
Option 2: 99
Option 3: 118.8
Option 4: 126
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Correct Answer: 118.8
Solution :
For Y7, the profit (before taxes) = 16,00,000 crore – 12,40,000 crore = 3,60,000 crore
The amount of tax paid for Y7 is calculated as:
profit × $\frac{\text{tax %}}{100}$
= $360000 × \frac{33}{100} = 360000 × 0.33$
= INR 118800 crore
Hence, the correct answer is 118.8.
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