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Journal entry for Income tax

sayad (Executive) (179 Points)

30 September 2023

hi what will be the journal entry for tax paid in advance and how the tds is adgusted

for AY 2022-23 - advance tax paid Rs 85000 , Rs 650000

after tax return had to pay addition tax AY 22-23 ( Rs 26000 // paid in FY 23-24 )

FOR TAX FY23-24 WHAT WILL BE ENTRY FOR PROVISION FOR INCOME TAX

CAN SOME ONE HELP ME WITH IN JOURNAL ENTRY IN SEQUENCE START FROM PROVISION TILL FINAL PAYMNET FOR ICOME TAX INCUDING THE TDS AMOUNT ADUJUSTED ENTRY

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10 Replies

sabyasachi mukherjee (26339 Points)
Replied 30 September 2023

Provisional entry for income tax .
One has to make.

prasad Nilugal ( GST Practitioner & Accounts ) (14242 Points)
Replied 30 September 2023

Advance Tax payment entry.

Advance Tax A/c Dr ( Current Assets)
To Bank A/c Cr
( payment of Advance tax )

TDS deducted by party entry

Bank A/c Dr
TDS receivable A/c Dr ( Current Assets)
To parties. A/c Cr
( payment received after deduction of TDS)

on 31st March provision for Income tax entry

Profit and loss A/c Dr
To Provision for Income tax A/c Cr
( provision entry)

Provision of tax , Advance tax, TDS receivable will be carried forward to next year. after filling of return and assessment adjustment , tax payable and tax paid entries are as follows.

Provision for Income tax A/c Dr
To Advance tax A/c Cr
To TDS receivable A/c Cr
To Income tax payable. A/c Cr
( after adjustment, tax payable)

Income tax payable A/c Dr
To Bank A/c Cr
( Income tax for privious F.Y paid )

sabyasachi mukherjee (26339 Points)
Replied 01 October 2023

Sequence is not correct.

RAJA P M ("Do the Right Thing...!!!") (127549 Points)
Replied 01 October 2023

@ Mr Professional (sabyasachi mukherjee)

Sequence is not correct then You give correct solutions for the query...
Please Please Please Please...

🙏🙏🙏🙏🙏

2 Like

sabyasachi mukherjee (26339 Points)
Replied 01 October 2023

First pass the original entry with gst clubbed.
Second month end provide for the liability.
Third pay the liability within due date.

RAJA P M ("Do the Right Thing...!!!") (127549 Points)
Replied 01 October 2023

Originally posted by : sabyasachi mukherjee
	First pass the original entry with gst clubbed.Second month end provide for the liability.Third pay the liability within due date.

Thanks Sir Ji...

But,

Please Provide the correct entries as per above. We will try to learn the accounting procedures...

1 Like

saurabh sawlani (2157 Points)
Replied 02 October 2023

Hi Raja sir, turnover of one of my client is Rs 1 crore 95 lakh, And his net profit is less than 2.5 lakhs,
So he will have tax audit requirement ?
I need your guidance sir🙏

NARENDRA (ACCOUNTS MANAGER) (1591 Points)
Replied 02 October 2023

Originally posted by : saurabh sawlani
	Hi Raja sir, turnover of one of my client is Rs 1 crore 95 lakh, And his net profit is less than 2.5 lakhs,So he will have tax audit requirement ?I need your guidance sir🙏

Yes, you should go with a tax audit. But if your cash transaction is less than 5% you can remain out of audit . But on that condition your net profit will be equivalent to 6% which is not fulfilled by you.

1 Like