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Content: Accounting Profit Vs Taxable Profit The financial profit of the business is known as accounting
profit while the profit which is taxable is known as taxable
profit.
BASIS FOR ACCOUNTING TAXABLE
COMPARISON PROFIT PROFIT The return is furnished to the relevant department in case of
taxable profit while accounting profit is publicly at the end of
the financial year.
Meaning The term accounting The term taxable
profit refers the profit refers to the Financial Audit is conducted for recognizing correct accounting
company's income profit of the profit. On the other hand, Tax Audit is carried out for
obtained after business which is recognizing the actual taxable profit.
reducing total taxable as per
expenses from total income tax rules. Accounting profit is used for the purpose of knowing
revenues. company’s profitability in the specified period while the
Taxable profit is used for the purpose of identifying the tax
payable by the company.
Basis Accounting Standard Income Tax Act Accounting Profit is for a particular financial year while Taxable
1961 Profit is for the previous year assessed in the assessment
year.
The financial year starts from 1st day of April and ends on the
31st day of March.
The amount of profit which is taxable as per the Income Tax Act,
1961 under the head Profit and Gains from Business or
Profession, is known as taxable profit. It is derived by taking
accounting profit as a base. Every year the return is furnished to
the income tax department for the previous year in the
assessment year. On the basis of this return the taxable profit and