Reversal of provision of income tax.

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umesh (Querist)
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26 September 2013 I created ,last year,provision for income tax of rs 40000 through profit & loss appropriation and now actual tax liability arise rs 38000....how to reverse it ?

and if anyone,please tell me how to show it in computax.. ?

CA Parul Saxena

CA Parul Saxena (Expert)
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27 September 2013 Provision for Income tax Dr...40000
To Bank (income tax paid)..............38000
To Reserves and surplus/P&L.............2000

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umesh

umesh (Querist)
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28 September 2013 CA Parul Saxena,Thanks.

but there is also a problem,how to feed it in software?

Eg.: Suppose opening R&S = 100000
Profit for the year = 20000
and reversal = 2000

now in P&L schedule in compuoffice software
it is showing rs 120000.and in Bal.Sheet schedule
R&S is showing is 122000..Showing error that amount not maatched. Help me.

CA Parul Saxena

CA Parul Saxena (Expert)
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30 September 2013 This entry to be made in next financial year suppose you created provision for the financial year 2012-13 then this entry to be made in 2013-14 as tax would be paid in this finanical year only.

umesh

umesh (Querist)
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02 October 2013 ohk ..thank you...apart from this,what do you do ma`m?

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