Income tax refund received
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
23 September 2013
What shall be the accounting entry for refund received without any interest in case of a company. Would like to mention that, the refund is due to excess deposit of interest u/s 234B.
23 September 2013
1)P&L A/c
to provision for tax
(on provision)
2)provision for tax
to income tax payable/refundable
3)income tax payable / refundable Dr
to bank A/c
(on payment of income tax
4)bank account Dr
to income tax refundable/ payable
.
.
all legers should goes zero
to provision for tax
(on provision)
2)provision for tax
to income tax payable/refundable
3)income tax payable / refundable Dr
to bank A/c
(on payment of income tax
4)bank account Dr
to income tax refundable/ payable
.
.
all legers should goes zero
Querist : Anonymous
Querist :
Anonymous
(Querist)
23 September 2013
The refund received is for FY 11-12. There has been no provision passed for refund.
31 July 2024
When a company receives a refund for excess deposit of interest under section 234B without any interest, the accounting entry should reflect the receipt of the refund and the adjustment of the excess deposit. Since there was no provision passed for the refund, the refund amount should be credited to the appropriate account. Here's how you can record the transaction:
### Accounting Entry:
1. **Bank Account:**
- Debit the bank account to reflect the increase in cash due to the refund received.
2. **Income Tax Receivable Account:**
- Credit the income tax receivable account or the relevant tax account where the excess deposit was originally recorded.
### Journal Entry:
```plaintext
Date: [Date of Refund Receipt]
Bank Account Dr. [Amount of Refund]
To Income Tax Receivable Account [Amount of Refund]
(Being refund received for excess deposit of interest under section 234B for FY 11-12)
```
### Explanation:
- **Bank Account (Debit):** This increases the cash balance of the company as the refund amount is received.
- **Income Tax Receivable Account (Credit):** This decreases the receivable or tax deposit account, reflecting the adjustment of the excess amount that was initially deposited.
### Example:
Suppose the refund amount received is ₹50,000.
```plaintext
Date: [Date of Refund Receipt]
Bank Account Dr. ₹50,000
To Income Tax Receivable Account ₹50,000
(Being refund received for excess deposit of interest under section 234B for FY 11-12)
```
This entry ensures that your books accurately reflect the receipt of the refund and the adjustment of the excess deposit initially recorded. If there are any specific guidelines or practices followed by your company or industry, you should consider those while recording the transaction.
### Accounting Entry:
1. **Bank Account:**
- Debit the bank account to reflect the increase in cash due to the refund received.
2. **Income Tax Receivable Account:**
- Credit the income tax receivable account or the relevant tax account where the excess deposit was originally recorded.
### Journal Entry:
```plaintext
Date: [Date of Refund Receipt]
Bank Account Dr. [Amount of Refund]
To Income Tax Receivable Account [Amount of Refund]
(Being refund received for excess deposit of interest under section 234B for FY 11-12)
```
### Explanation:
- **Bank Account (Debit):** This increases the cash balance of the company as the refund amount is received.
- **Income Tax Receivable Account (Credit):** This decreases the receivable or tax deposit account, reflecting the adjustment of the excess amount that was initially deposited.
### Example:
Suppose the refund amount received is ₹50,000.
```plaintext
Date: [Date of Refund Receipt]
Bank Account Dr. ₹50,000
To Income Tax Receivable Account ₹50,000
(Being refund received for excess deposit of interest under section 234B for FY 11-12)
```
This entry ensures that your books accurately reflect the receipt of the refund and the adjustment of the excess deposit initially recorded. If there are any specific guidelines or practices followed by your company or industry, you should consider those while recording the transaction.
31 July 2024
When a company receives a refund for excess deposit of interest under section 234B without any interest, the accounting entry should reflect the receipt of the refund and the adjustment of the excess deposit. Since there was no provision passed for the refund, the refund amount should be credited to the appropriate account. Here's how you can record the transaction:
### Accounting Entry:
1. **Bank Account:**
- Debit the bank account to reflect the increase in cash due to the refund received.
2. **Income Tax Receivable Account:**
- Credit the income tax receivable account or the relevant tax account where the excess deposit was originally recorded.
### Journal Entry:
```plaintext
Date: [Date of Refund Receipt]
Bank Account Dr. [Amount of Refund]
To Income Tax Receivable Account [Amount of Refund]
(Being refund received for excess deposit of interest under section 234B for FY 11-12)
```
### Explanation:
- **Bank Account (Debit):** This increases the cash balance of the company as the refund amount is received.
- **Income Tax Receivable Account (Credit):** This decreases the receivable or tax deposit account, reflecting the adjustment of the excess amount that was initially deposited.
### Example:
Suppose the refund amount received is ₹50,000.
```plaintext
Date: [Date of Refund Receipt]
Bank Account Dr. ₹50,000
To Income Tax Receivable Account ₹50,000
(Being refund received for excess deposit of interest under section 234B for FY 11-12)
```
This entry ensures that your books accurately reflect the receipt of the refund and the adjustment of the excess deposit initially recorded. If there are any specific guidelines or practices followed by your company or industry, you should consider those while recording the transaction.
### Accounting Entry:
1. **Bank Account:**
- Debit the bank account to reflect the increase in cash due to the refund received.
2. **Income Tax Receivable Account:**
- Credit the income tax receivable account or the relevant tax account where the excess deposit was originally recorded.
### Journal Entry:
```plaintext
Date: [Date of Refund Receipt]
Bank Account Dr. [Amount of Refund]
To Income Tax Receivable Account [Amount of Refund]
(Being refund received for excess deposit of interest under section 234B for FY 11-12)
```
### Explanation:
- **Bank Account (Debit):** This increases the cash balance of the company as the refund amount is received.
- **Income Tax Receivable Account (Credit):** This decreases the receivable or tax deposit account, reflecting the adjustment of the excess amount that was initially deposited.
### Example:
Suppose the refund amount received is ₹50,000.
```plaintext
Date: [Date of Refund Receipt]
Bank Account Dr. ₹50,000
To Income Tax Receivable Account ₹50,000
(Being refund received for excess deposit of interest under section 234B for FY 11-12)
```
This entry ensures that your books accurately reflect the receipt of the refund and the adjustment of the excess deposit initially recorded. If there are any specific guidelines or practices followed by your company or industry, you should consider those while recording the transaction.
31 July 2024
When a company receives a refund for excess deposit of interest under section 234B without any interest, the accounting entry should reflect the receipt of the refund and the adjustment of the excess deposit. Since there was no provision passed for the refund, the refund amount should be credited to the appropriate account. Here's how you can record the transaction:
### Accounting Entry:
1. **Bank Account:**
- Debit the bank account to reflect the increase in cash due to the refund received.
2. **Income Tax Receivable Account:**
- Credit the income tax receivable account or the relevant tax account where the excess deposit was originally recorded.
### Journal Entry:
```plaintext
Date: [Date of Refund Receipt]
Bank Account Dr. [Amount of Refund]
To Income Tax Receivable Account [Amount of Refund]
(Being refund received for excess deposit of interest under section 234B for FY 11-12)
```
### Explanation:
- **Bank Account (Debit):** This increases the cash balance of the company as the refund amount is received.
- **Income Tax Receivable Account (Credit):** This decreases the receivable or tax deposit account, reflecting the adjustment of the excess amount that was initially deposited.
### Example:
Suppose the refund amount received is ₹50,000.
```plaintext
Date: [Date of Refund Receipt]
Bank Account Dr. ₹50,000
To Income Tax Receivable Account ₹50,000
(Being refund received for excess deposit of interest under section 234B for FY 11-12)
```
This entry ensures that your books accurately reflect the receipt of the refund and the adjustment of the excess deposit initially recorded. If there are any specific guidelines or practices followed by your company or industry, you should consider those while recording the transaction.
### Accounting Entry:
1. **Bank Account:**
- Debit the bank account to reflect the increase in cash due to the refund received.
2. **Income Tax Receivable Account:**
- Credit the income tax receivable account or the relevant tax account where the excess deposit was originally recorded.
### Journal Entry:
```plaintext
Date: [Date of Refund Receipt]
Bank Account Dr. [Amount of Refund]
To Income Tax Receivable Account [Amount of Refund]
(Being refund received for excess deposit of interest under section 234B for FY 11-12)
```
### Explanation:
- **Bank Account (Debit):** This increases the cash balance of the company as the refund amount is received.
- **Income Tax Receivable Account (Credit):** This decreases the receivable or tax deposit account, reflecting the adjustment of the excess amount that was initially deposited.
### Example:
Suppose the refund amount received is ₹50,000.
```plaintext
Date: [Date of Refund Receipt]
Bank Account Dr. ₹50,000
To Income Tax Receivable Account ₹50,000
(Being refund received for excess deposit of interest under section 234B for FY 11-12)
```
This entry ensures that your books accurately reflect the receipt of the refund and the adjustment of the excess deposit initially recorded. If there are any specific guidelines or practices followed by your company or industry, you should consider those while recording the transaction.
31 July 2024
When a company receives a refund for excess deposit of interest under section 234B without any interest, the accounting entry should reflect the receipt of the refund and the adjustment of the excess deposit. Since there was no provision passed for the refund, the refund amount should be credited to the appropriate account. Here's how you can record the transaction:
### Accounting Entry:
1. **Bank Account:**
- Debit the bank account to reflect the increase in cash due to the refund received.
2. **Income Tax Receivable Account:**
- Credit the income tax receivable account or the relevant tax account where the excess deposit was originally recorded.
### Journal Entry:
```plaintext
Date: [Date of Refund Receipt]
Bank Account Dr. [Amount of Refund]
To Income Tax Receivable Account [Amount of Refund]
(Being refund received for excess deposit of interest under section 234B for FY 11-12)
```
### Explanation:
- **Bank Account (Debit):** This increases the cash balance of the company as the refund amount is received.
- **Income Tax Receivable Account (Credit):** This decreases the receivable or tax deposit account, reflecting the adjustment of the excess amount that was initially deposited.
### Example:
Suppose the refund amount received is ₹50,000.
```plaintext
Date: [Date of Refund Receipt]
Bank Account Dr. ₹50,000
To Income Tax Receivable Account ₹50,000
(Being refund received for excess deposit of interest under section 234B for FY 11-12)
```
This entry ensures that your books accurately reflect the receipt of the refund and the adjustment of the excess deposit initially recorded. If there are any specific guidelines or practices followed by your company or industry, you should consider those while recording the transaction.
### Accounting Entry:
1. **Bank Account:**
- Debit the bank account to reflect the increase in cash due to the refund received.
2. **Income Tax Receivable Account:**
- Credit the income tax receivable account or the relevant tax account where the excess deposit was originally recorded.
### Journal Entry:
```plaintext
Date: [Date of Refund Receipt]
Bank Account Dr. [Amount of Refund]
To Income Tax Receivable Account [Amount of Refund]
(Being refund received for excess deposit of interest under section 234B for FY 11-12)
```
### Explanation:
- **Bank Account (Debit):** This increases the cash balance of the company as the refund amount is received.
- **Income Tax Receivable Account (Credit):** This decreases the receivable or tax deposit account, reflecting the adjustment of the excess amount that was initially deposited.
### Example:
Suppose the refund amount received is ₹50,000.
```plaintext
Date: [Date of Refund Receipt]
Bank Account Dr. ₹50,000
To Income Tax Receivable Account ₹50,000
(Being refund received for excess deposit of interest under section 234B for FY 11-12)
```
This entry ensures that your books accurately reflect the receipt of the refund and the adjustment of the excess deposit initially recorded. If there are any specific guidelines or practices followed by your company or industry, you should consider those while recording the transaction.
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
- TAN for Partnership
- Relief u/s Section 89
- Sales return eway bill
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- GST Rate applicable for 0% Food Items sold by an Industrial Caterer
- GST Registration Horse racing
- Section 43B(h) – MSME Invoice Paid Before Year End but After 45 Days
- Loan by Partnership Firm
- 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
- Nomination of Bank for refund in itr 2
- 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
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
