The following information are provided to you in respect of Vardhman Ltd. for the financial year 2025-26: Estimated total annual income - 5,00,000…

(i) Computation of Total tax expense As per para 29 of AS 25 'Interim Financial Reporting', income tax expense is recognised in each interim period based on the best estimate of the weighted average annual income tax rate expected for the full financial year. Particulars ₹ Capital Gain 1,00,000 Other Income 4,00,000 Estimated total Annual Income (A) 5,00,000 Tax expense: 20% on 1,00,000 (capital gain) 20,000 35% on First - 2,00,000 70,000 40% on the remaining 2,00,000 80,000 Total Tax expense (B) 1,70,000 Weighted average annual income tax rate = 1,50,000 / 4,00,000 = 37.5% Income Tax Rate on Capital Gain=20% Quarterly Income Total Income (₹) Capital Gain (₹) Quarterly Tax Calculation Quarterly Tax expense Q1 1,25,000 Nil 1,25,000 × 37.5% 46,875 Q2 1,25,000 1,00,000 Tax on Capital Gains = 1,00,000 × 20% = 20,000 Tax on remaining income = 25,000 × 37.5% = 9,375 29,375 Q3 1,25,000 Nil 1,25,000 × 37.5% 46,875 Q4 1,25,000 Nil 1,25,000 × 37.5% 46,875