Are there any differences between Tax Profit and Accounting Profit?

Question

Accepted Answer

Yes

Tax profit and accounting profit are different concepts in finance.
Tax profit refers to the profit calculated for tax purposes, taking into account tax laws and regulations.
Accounting profit, on the other hand, is the profit calculated based on generally accepted accounting principles (GAAP).
Tax profit can be higher or lower than accounting profit depending on various factors such as tax deductions, credits, and allowances.
For example, a company may have higher accounting profit due to depreciation expenses, but lower tax profit after considering tax deductions on depreciation.
Tax profit is used to determine the taxable income and the amount of tax liability, while accounting profit is used for financial reporting purposes.

Accepted Answer

profit before tax is accounting profit tax profit is amt on which tax is calculated

Accepted Answer

Yes.... Example like Depreciation will be different in calculating Accounts profit and Tax profit...

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