Accounting entries for income tax

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Querist : Anonymous

Querist : Anonymous (Querist)

22 June 2013 I want know about all relevant accounting entries passed for income tax.& when (date) should i passed entry for provision of income tax at the time of paying 1 st installment of advance tax or at year end?

Please reply my query.......

Rupesh Jain

Rupesh Jain (Expert)
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22 June 2013 adj entry passed after the filing of income tax return

but final entry of income tax liaility
will generated on assessment order.

Arun

Arun (Expert)
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22 June 2013 Entries for Income Tax
F.y 2011-12
1.At the time of paying Advance Tax:-
Advance A/c Dr. 200000
To Bank 200000

2.At the year end after computation of tax
Income Tax A/c Dr. 250000
To Provision for tax 250000

F.Y.2012-13
If the tax as per return for the f.y. 2011-12 is say 280000

Than the entry in the beginning of the f.y. 2012-13 will be:-

Provision for tax A/c Dr. 250000
Income Tax A/c Dr. 30000
To Advance Tax 200000
To Bank 80000

Second Situation:
Suppose if the actual tax is Rs. 180000

Than Entry in the beginning will be:-

Provision for tax 250000
Income Tax Refund 20000
To Advance Tax 200000
To Income Tax 70000

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