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Querist : Anonymous

Querist : Anonymous (Querist)

13 October 2011 In Form 23ACA, there is one point Income tax including deferred tax includes only current year taxation or it includes Short /excess provision of previous year.Please reply its very urgent.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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13 October 2011 Amount appearing in the attached p&l account must be shown, irrespective of the year to which that amount belongs.

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Querist : Anonymous

Querist : Anonymous (Querist)

13 October 2011 But what about below the line expenses i.e Prior period expenses.

Querist : Anonymous

Querist : Anonymous (Querist)

14 October 2011 But what about Transfer to reserves where should i reflect this in Form 23ACA

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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22 July 2025 In Form 23ACA, here’s how to handle these items:

Income tax including deferred tax:
Report the total tax expense as per the Profit & Loss Account for the current year. This includes:

Current tax for the current year

Deferred tax for the current year

Any adjustments related to previous years (such as short/excess provision) should also be included as they affect the tax expense in the P&L.

Prior period expenses:
These are expenses related to previous years but recognized in the current year. They should be shown under "Prior Period Items" or as part of "Exceptional Items" if applicable, reflecting the nature of those expenses. In Form 23ACA, they typically come under the P&L line items (adjustments to the profit or loss).

Transfer to Reserves:
Transfers to reserves (like general reserve, capital reserve, or statutory reserve) do not appear in the Profit & Loss Account, so they should NOT be shown in Form 23ACA under the P&L schedules. They are reflected in the Balance Sheet part of the filing, under Reserves & Surplus.

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