18 April 2017
A partnership firm whose profit as per books of account is different from profit as per Income Tax Act. So in this case calculation and depositing of advance tax will be as per books of account or as per income tax act. However firm wish to deposit advance tax as per income tax act because there is low liab. of income tax as compare to books of accounts Please suggest
Kindly Note that Advance tax under Income tax is always paid on the basis of tax as per income tax Act and boon profits (i.e profits as per books of accounts) or tax on book profits has nothing to do with Advance tax payable under income tax.
19 April 2017
Ok sir, That means advance tax will be calculated and paid as per tax liab. which is recurring as per income tax act. Profit shown in books of accounts have no relevance for calculation of advance tax ??
because at the end i.e at the time of filing ITR we have to make adjustments in profit as per books of accounts in order to compute "income under head business or profession".
CAclubindia
