Income tax entry in tally.

This query is : Resolved

Quick Summary

Income tax in Tally is recorded via provision method. Create provision under current liabilities and show tax paid under current assets. For firms, payment entry is adjusted against provision after assessment.

Querist : Anonymous

Querist : Anonymous (Querist)

15 September 2012 Dear Sir,

We have paid annual income tax return for fy-2011-12 but we know about income tax entry going in tally which group under.

Thanks in advance.

Amol S Joglekar

Amol S Joglekar (Expert)
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15 September 2012 In case of individual, put it under current assets. In case of company create a provision under current liability and at the time of payment, make payment through this account.

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Querist : Anonymous

Querist : Anonymous (Querist)

15 September 2012 Sir,

our firm is partnership firm & we have paid income tax on dt-05/09/2012 & Make entry in tally is

Income Tax (Return) a/c dr.

Bank a/c cr.

This entry correct or wrong & tell me in which under group take it.

Amol S Joglekar

Amol S Joglekar (Expert)
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15 September 2012 The partnerships normally follow the pattern as followed by the comapnies. Provisions are created. Income tax paid are shown on current assets. After the assessment, the entry is adjusted in provision and current asset account.

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