As in case of company.. We deduct tax from interest of bond as shown in p&l.. Then why we not use tax in this formula… As interest received by investor will shown in p&l and tax will be given on the income.. By investor..due to which tax will be paid by investor
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We don’t consider tax because income tax of a investor is treated as personal expenditure.
Company investors ko interest pay karti hai and investors us par income tax pay karte hai jo ki personal expenditure hota hai.
Jabki company ko interest pay karne par tax ka benefit hota hai.
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