Income Tax Treatment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 June 2010 Sir/Madam,

In FY 2009-10,
1. Advance Tax Paid - Rs.60000
2. Provsion for Income Tax - Rs.66000

During FY 2010-11, Rs.6000 is paid as Self-assessment Tax

What will be the Accounting Treatment (ie) Entry to be passed for Payment of Self-assessment Tax of Rs.6000?

Note: Assessment has not been completed.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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09 June 2010 SELF ASSESSMENT TAX A/C DR..
TO BANK...
THIS WAY ADVANCE TAX OF 60000/- AND SAT OF 6000/- WILL APPEAR IN ASSETS SIDE IN YOUR BALANCE SHEET AND PROV FOR INCOME TAX 66000/- WILL APPEAR ON LIABILITY SIDE. WHEN ASSESSMENT IS COMPLETED ADJUSTMENT ENTRY WILL BE PASSED.
IF ASSESSMENT ORDER IS AS PER YOUR PAYMENT.

THEN SIMPLY---

PROV FOR INCOME TAX A/C DR
TO ADVANCE TAX
TO SAT

CA.Pujah

CA.Pujah (Expert)
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09 June 2010 agreed with above. Just to add : that adv tax paid & SAT paid may be debited to same head say Income TAx Paid A/c.

S.Siju Gemin

S.Siju Gemin (Expert)
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09 June 2010 In the books of F.Y.2009-10(Entries)
1. Advance Tax Paid - Rs.60000

Dr. Advance Tax A/c Rs.60000
Cr. Bank A/c Rs.60000

2. Provsion for Income Tax - Rs.66000

Dr.Income Tax A/c Rs.66000
Cr.Advance Tax A/c Rs.60000
Cr.Provision for Income Tax RS.6000

In the books of F.Y.2010-11(Entries)

Self-assessment Tax of Rs.6000

Dr.Provision for Income Tax Rs.6000
Cr.Bank Rs.6000