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Under which head does tds by banks come?

Dr. Jones (Director) (253 Points)

19 June 2013

My bank deducted TDS for the interest my company earned from FD.

Where in Balance Sheet or Profit/Loss does this TDS entry come?

I want to know whether this TDS comes under Balance Sheet or Profit and Loss statement.

Thanks!

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3 Replies

nayan (article assistant) (466 Points)
Replied 19 June 2013

it will neither come in pl neither balance sheet, prepeare tds statement, calculate the net tax to be paid while filing itr and deduct the tds and pay the balance amount, the total tds to be paid will come in p&l. wait for expert answers too

shivam gupta (Student) (142 Points)
Replied 19 June 2013

TDS Receivable will be shown under "Other Asset " of "Current Asset" in your Balance sheet .

TDS receivable is a sort of Advance tax paid on your Behalf by the Bank.

See the Entry:- (Suppose Intrest is 50000 & Tds is 5000)

End of Financial Year 12-13(Assuming intrest will be recieved after the end of Fiancial Year, Which usually happens in Practical Life)

Intrest receivable A/c Dr. 50000

To Intrest Income 50000

(Being amount Due)

Intrest Income A/c Dr.

To P&L

(Being Income Booked)

Intrest received after F/Y 12-13 (i.e Beginning of F/Y 13-14)

Bank A/c Dr. 45000

TDS Receivable A/c Dr. 5000

To Intrest Recivable 50000

(Being Amount Received)

The amount of TDS recivable will be adjusted against Income tax Payable.

Supoose your income tax payable is 60000

Entry would be

Income Tax Payable A/c Dr. 60000

To TDS receivale 5000

To Bank 55000

(I hope you will find it Helpful)

ANKIT AGARWAL (DEF) (580 Points)
Replied 19 June 2013

P & L - Book Gross Amount (including Interest) in your P & L Account as Interest Income;

B S - Since you received only net amount (net of TDS) from your Bank, the TDS portion is still due. It is a accrued Income Due and hence Current assets under as "TDS Receivable"

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