Tds

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SARATH.C.P

SARATH.C.P (Querist)
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06 December 2014 Plz help:-

Question:

If we get any Income after deducting TDS on the amount, what will be the journal entries when;

a. Receiving the amount
b. reimbursement of TDS from Govt.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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06 December 2014 a) Say Income is Rs 100 and TDS is Rs 10

Bank A/c Dr Rs 90
TDS Receivabe A/c Dr Rs 10
To Income A/c Rs 100

2) If the Tax Liability is NIL and the entire TDS is refundable then.

After filing return--

Income Tax Refund for AY.....A/c Dr Rs 10
To TDS Receivable A/c Rs 10

When refund is credited in bank--

Bank A/c Dr Rs 10
To Income Tax Refund for AY ...A/c Rs 10

SARATH.C.P

SARATH.C.P (Querist)
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06 December 2014 THANKS A LOT FOR YOUR INFORMATION

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