Tax Liability in Profit & Loss for declare Interim Dividend

[DHARMENDRA KASLE]

For declaring Interim Dividend in September 2013,  i have taken depreciation full year but confusion about IT liability should i consider for full year or till date ?

 

[CAGOPALJI AGRAWAL]

To my view, it should be on the basis of income till date.

AI Summary

Interim dividend tax liability should be calculated on income to date rather than full-year estimates. Tax liability for declaring an interim dividend should be computed on the basis of income earned up to the declaration date; even if depreciation is charged for the full year, the tax expense for the interim distribution must align with year-to-date taxable income rather than a full-year projection.