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Advance Tax 2nd Qtr

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Dear Sir,

For Advance Tax whether we should take P&L upto 31st Aug or 15th Sept
Replies (4)

It is paid over total estimated tax payable upto 31st March.

i.e for 2nd quarter..... 

45% of advance tax less advance tax already paid
Advance Tax is payable based on tax liability on estimated total income of a financial year.

First installment on or before 15th June @ 15% of estimated tax liability

Second installment on or before 15th Sept @ 30% (45% less 15% already paid) of estimated tax liability

1. As per sec 207, it is the responsibility of the assessee to pay advance tax as per your estimated profit. The due date for the Q2 will be on or before and 45% of the tax liability should have been paid. 
2. The provision has not specified any such condition that profit should be at the end of the month. And it would be wise to take the profit as on 15th of September since 45% of tax liability will be calculated as on 15th September. 
3. Hence take P&L as on 15th of September and pay the advance tax liability. 
Please correct me if the above solution has an alternative view. 

Advance tax is always based on tax liability on estimated total income of the FY.

------
If you calculate on quarterly profit basis then there is surely interest under 234C (deferment of tax)

so keep a note of this and pay advance tax instalments at prescribed %ages before due date.


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