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Refund

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Mugdha (Querist)
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21 July 2011 if company received IT refund for the year 07-08 in the year 2010-11 through ecs how to show the entry of IT Refund in the books of accounts . please guide me.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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21 July 2011 For 07-08 , you must have these items standing in your books of accounts :

Either : Income Tax Refund Claim

OR : 1. Advance Tax 07-08
2. Provision for tax 07-08
3. TDS recoverable 07-08

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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21 July 2011 In case 1 :

Bank A/c Dr.
To Income Tax refund Claim Cr.
To Interest Received Cr.
(Excess of amount recd over refund claim)

Case 2 :
Bank A/c Dr.
Provision for Tax 07-08 Dr.
To Advance Tax 07-08 Cr.
To TDS Recoverable 07-08 Cr.
To Interest Received Cr.
(Excess of amount recd over refund claim)

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