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Tds refund

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23 July 2014 Can i consider Income Tax Refund as a Income or else, let me know the treatment

23 July 2014 no its not taxable but u need to show it in capital account but any int rec is taxable as income from other sources

23 July 2014 Income tax refund is not your income. Only interest received on refund is your income. Interest on IT Refund to be taken into income from other sources and refund amount to be credit to capital account in case of individual.




23 July 2014 in case company, what is the treatment & entry,


can i Debit Provision for Income Tax to Profit & Loss .

23 July 2014 in case of co u need to adjust against the provision of income tax created in the year.

23 July 2014 My new query is that Can i debit Provision for Income tax to P&L A/c .

Thanks for Reply

24 July 2014 yes you can debit the provision.

24 July 2014 But Provision for Income Tax is a not a expenditure, & at the same time profit also decrease.




24 July 2014 but u had created a provision which now u need to adjust and tax is never an exp but a charge on profit.................

24 July 2014 Dear Gangadhar,

you are confusing between accounting treatment and tax treatment. the provision created in the books is the accounting treatment

24 July 2014 okay, while filing income tax return which income is to be consider,

Whether before provision for Tax r after

24 July 2014 before provision for taxation.




24 July 2014 before provision for taxation.

24 July 2014 okay thanks a lot . sir

24 July 2014 you are welcome friend....




24 July 2014 you are welcome friend....



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