IT payment for AY 21-22

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This discussion clarifies the correct accounting treatment for an IT payment made for AY 21-22, particularly when funded by business income. The consensus is to charge this payment directly to the Profit and Loss (P&L) account as an expense for the financial year 2021-22. This ensures an accurate reflection of profitability after tax for that period.

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(Querist)
12 February 2022 I've paid my IT for AY 21-22 from my current account as mostly its business income from the same business. What will be its entry in books. Will it go in PL account as expense.
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
12 February 2022 Yes, charge it to PL account to know profit after tax.
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Kunal Mittal

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Kunal Mittal (Querist)
12 February 2022 Charge it to PL account of AY 22-23?
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CA Puja Sharma

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CA Puja Sharma (Expert)
12 February 2022 Yes charge it to P/L in FY 2021-22.
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