Provision for tax
This query is : Resolved
16 February 2013
Dear Sir,
We booked Provision for Tax in P&L a/c. Rs.9.50 lacs.
As per computation of Income Rs. 9.33 lacs payable.
We filed the return, now IT dept. asking the explanation, why prov. of tax shown high.
Kindly advice, only Rs.17 thousand shown high, how can we give reply for this. any account/ finance related answer for this.
Please reply with your answer.
Aarti
We booked Provision for Tax in P&L a/c. Rs.9.50 lacs.
As per computation of Income Rs. 9.33 lacs payable.
We filed the return, now IT dept. asking the explanation, why prov. of tax shown high.
Kindly advice, only Rs.17 thousand shown high, how can we give reply for this. any account/ finance related answer for this.
Please reply with your answer.
Aarti
17 February 2013
Dear Arti,
Well honestly, its a useless query by the department. In any case, if the AO continues to insist upon the explanation, you may give the details of reasons between the provisioning and final tax liability.
I am sure it is not a difficult tax as there must have been some basis for arriving at the provisioning figure.
Well honestly, its a useless query by the department. In any case, if the AO continues to insist upon the explanation, you may give the details of reasons between the provisioning and final tax liability.
I am sure it is not a difficult tax as there must have been some basis for arriving at the provisioning figure.
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