Q10 pg 7.78 icai module investment decisions – in this question why is the opportunity cost of 30 lakhs per annum considered as tax deductible in the solution . It shouldn’t be as it’s the opportunity cost not the actual cost incurred . Please explain
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The based on the principle that if the cost was incurred, we would get a tax benefit from it.
But in reality no cost was incurred so why do we have to show the tax benefit thing, cant we directly subtract it without showing 30% tax benefit …??
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Okay got it , thank you so much !