accounting of income tax in tally
This query is : Resolved
monu kumar
(Querist)
17 February 2011
my question is income tax ki accounting kaise karte hai tally me aur advance tax ko kaise adjust kiya jata hai
chetan soni
(Expert)
17 February 2011
There are two ways to do the accounting;
First way (generally followed by most);
At the time of advance tax payment booked it under current assets. For provision of income tax make the entry & show income tax payable under current liabilities.
After the assessment by the income tax department knock off the assets against liabilities.
Second way;
At the time of advance tax payment booked it under provision for taxation under current liabilities, this account will show debit balance through out the year. For provision of income tax make the entry & credit the Provision for taxation account under current liabilities.
After the assessment by the income tax department you don't need to adjust anything in the balance sheet.
First way (generally followed by most);
At the time of advance tax payment booked it under current assets. For provision of income tax make the entry & show income tax payable under current liabilities.
After the assessment by the income tax department knock off the assets against liabilities.
Second way;
At the time of advance tax payment booked it under provision for taxation under current liabilities, this account will show debit balance through out the year. For provision of income tax make the entry & credit the Provision for taxation account under current liabilities.
After the assessment by the income tax department you don't need to adjust anything in the balance sheet.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Capital Gail Exemption Certificate
- Taxation of crypto futures in India Fy 2026- 2027
- Transfer of Physical Stock Between Two Proprietorship Concerns
- EPF ECR NEW RULES Sep 17th 2026
- Issuing of delivery challan by seller of goods
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
