Journal entries for income tax refund

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On income tax refund, pass entry Bank Dr to Income Tax or TDS A c and credit Interest on Refund separately. Interest is taxable under other sources.

amit jain

amit jain (Querist)
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21 September 2014 what are the journal entries for income tax refund?

Thiru

Thiru (Expert)
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22 September 2014 You should have made journal and payment entries for income tax paid and TDS in the previous year. If you have shown the TDS in capital account, then you have to make a receipt entry as Dr. Bank A/c Cr. Capital A/c (for tax refund) and Cr. Interest on Refund (for interest on such refund). In that interest on refund will be taxed under other sources.
If in case you have made entries for previous years and shown the refund amount due in your balance sheet then entry will be Dr. Bank, Cr. IT Refund and Cr. Interest on IT refund

CA P K AGRAWAL

CA P K AGRAWAL (Expert)
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24 September 2014 Bank A/c Dr.
To Capital A/c or TDS or IT A/c
To Intt on IT refund a/c

CA P K AGRAWAL

CA P K AGRAWAL (Expert)
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24 September 2014 Bank A/c Dr.
To Capital A/c or TDS or IT A/c
To Intt on IT refund a/c

CA P K AGRAWAL

CA P K AGRAWAL (Expert)
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24 September 2014 Bank A/c Dr.
To Capital A/c or TDS or IT A/c
To Intt on IT refund a/c

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