Income tax refund
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
25 August 2010
Our company has received income tax refund for AY 07-08.
Can you please tell me how to account it?
Below is the procedure.kindly confirm whether it is correct?
1.open income tax refund account under P&L
2. Trf interest on income tax refund to interest recd on income tax refund acount. it will be p&l item.
3.Net of tds, provision and advance tax. whatever balance is pending in income tax refund account is treated as company's exp or loss for the year in which the refund is recd.
4.The above entry needs to be passed in the year in which refund is received.
Can you please tell me how to account it?
Below is the procedure.kindly confirm whether it is correct?
1.open income tax refund account under P&L
2. Trf interest on income tax refund to interest recd on income tax refund acount. it will be p&l item.
3.Net of tds, provision and advance tax. whatever balance is pending in income tax refund account is treated as company's exp or loss for the year in which the refund is recd.
4.The above entry needs to be passed in the year in which refund is received.
25 August 2010
Yes correct, but if any bal remains in tax refund account treat it as excess/short provision of previous year.
25 August 2010
no only interest on income tax refund will be treated as income .
income tax refund may be created under loans and advances
income tax refund ...........dr
provision for income tax ......dr
to advance tax
to, self assessment tax
to, tds receivable
to, interest on it refund
(if there is any differene then it should be adjusted with reserve & and surplus as tax on regular assessment)
interest on it refund .......dr
to, P/L A/C
bank -----------dr
to, it refund
income tax refund may be created under loans and advances
income tax refund ...........dr
provision for income tax ......dr
to advance tax
to, self assessment tax
to, tds receivable
to, interest on it refund
(if there is any differene then it should be adjusted with reserve & and surplus as tax on regular assessment)
interest on it refund .......dr
to, P/L A/C
bank -----------dr
to, it refund
25 August 2010
Agreed with Mr. Sanat..
Interest earned on IT refund is to be treated as Income & Income Tax Refund should be created as part of "Loans & Advances".
Interest earned on IT refund is to be treated as Income & Income Tax Refund should be created as part of "Loans & Advances".
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
- STCG....................................................
- Supply through E-commerce Operators
- Sales return eway bill
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Relief u/s Section 89
- GST ON DAMAGED GOODS
- Suggestions required for income tax filing-software (FY 2025-26)
- GST Rate applicable for 0% Food Items sold by an Industrial Caterer
- Loan by Partnership Firm
- Taxation on LTCG for property sold after 24JUL2024
- TAN for Partnership
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
