How much should be provision for tax ??

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This query is : Resolved

CA Abhishek Singh (Querist)

29 September 2013 Hello everyone,

one of my client is a pvt ltd company

Net profit before tax : Rs.937410/-
Tax deducted at source : 156224
provision for tax : ?

there is no difference in book profit and taxable income from business and profession except for provision for tax.

how much amt should be provided in the accounts for income tax(incl. advance tax interest) ?

waiting for the views of the experts.

Ganeshbabu K

Ganeshbabu K (Expert)

04 October 2013 TAX has to computed on net profit before tax and the same amount to be considered as provision for tax
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provision for tax means total tax liability for current year ,,hence advancetax and tds, will not deducted from provision for tax,,it includes interest 234A,234B,234C
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Computation:-

NPBT XXX
Add: dep.. as per companies act xxx
Less: Dep.. as per incometax act XXX
Add: tax audit disallowances xxx
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Net taxable income xxx
Add interest xxx
total tax payable xxx
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provision to be created on total tax payable

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