22 September 2014
You should have made journal and payment entries for income tax paid and TDS in the previous year. If you have shown the TDS in capital account, then you have to make a receipt entry as Dr. Bank A/c Cr. Capital A/c (for tax refund) and Cr. Interest on Refund (for interest on such refund). In that interest on refund will be taxed under other sources. If in case you have made entries for previous years and shown the refund amount due in your balance sheet then entry will be Dr. Bank, Cr. IT Refund and Cr. Interest on IT refund
CAclubindia
