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Advance tax in loss making company

ish kumar sharma (Sr. Manager Accounts & Finance) (301 Points)

11 March 2016

hi expert, i wanna clear the situation as our company is in loss situation and even book profit u/s 115JB is also negative, we even have TDS amount of 400000/- as per 26AS, my boss asked me to advice him to advance tax liability of the company . I told him that there is no need of advance tax , but he always keep on saying there is liability , how is it possible???? please make me clear about the situation. he has given me time till today!!

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4 Replies

Varun Sharma (Proprietor-Sharma Varun & Co.) (244 Points)
Replied 11 March 2016

Hi Ish,

No need to panic

Please note advance tax is required to be paid u/s 207(1) & 208 of IT Act, 1961.

For companies there are four payment deadlines 15th, June; 15th Sep: 15th Dec and 15th March for every previous year, except assessee is opting for section 44AD u/s IT Act, 1961.

Considering your case, as mentioned by you that there is no tax liability on the company neither as per normal provisions of Income tax nor u/s 115JB of IT Act, 1961. Hence, there is no liability to submit advance tax.

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ish kumar sharma (Sr. Manager Accounts & Finance) (301 Points)
Replied 11 March 2016

Thanks Varun,

i dont know why boss is asking for the same, even muy point is same, let me ask you onee more thing, our last year,s reserve ansd surplus was 1,40,14,523/- will this make any difference in this case???