My question is :- Whether I have to make provision for Income Tax of Rs. 1,51,000/- (As this amount is only payable as on 31.03.2013) after taking concern of TDS RECOVERABLE & ADVANCE TAX PAID ? OR WHETHER PROVISION FOR INCOME TAX OF RS. 462500 (ie., Total Tax Payable for Current Year) is to be made and Reversed Entry is to be passed on next year? Please Clarify calculating “PROVISION FOR INCOME TAX” in case of TDS RECOVERABLE and ADVANCE TAX PAID. Is PROVISION FOR INCOME TAX IS CALCULATED AFTER DEDUCTING TDS RECOVERABLE?
06 September 2013
Thank u sir, for your prompt reply. It means Provision for Income Tax is always made equal to Full Tax Payable Amount.(i.e., TOTAL CURRENT TAX).