An entity's accounting year ends is 31 st December, but its tax year end is 31 st March. The entity publishes an interim financial report for each…

Table showing computation of tax charge: Quarter ending 30 th June, 20X1 ₹ Quarter ending 30 th September, 20X1 ₹ Quarter ending 31 st December, 20X1 ₹ Quarter ending 31 st March, 20X1 ₹ Year ending 31 st December, 20X1 ₹ Profit before tax 10,000 10,000 10,000 10,000 40,000 Tax charge (2,500) (3,000) (3,000) (3,000) (11,500) 7,500 7,000 7,000 7,000 28,500 Since an entity's accounting year is not same as the tax year, more than one tax rate might apply during the accounting year. Accordingly, the entity should apply the effective tax rate for each interim period to the pre-tax result for that period.