Capital gain tax is directly related to the sale of a fixed asset, which is an investing activity. Therefore, the tax paid on such capital gain is classified along with the related activity as a Cash outflow from Investing Activities.
Capital gain tax paid on sale of fixed assets should be classified as _______
Held on 29 May 2023 · Verified 13 Jul 2026.
Cash inflow from Operating Activities
Cash outflow from Operating Activities
Cash inflow from Investing Activities
Cash outflow from Investing Activities
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Work through every CUET UG Financial Statements PYQ, year by year.