TDS refund

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Neelam Gupta

Neelam Gupta (Querist)
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27 April 2011 Kindly tell me TDS refund entry received from Income tax department for f.y. 2009-2010.

CA. Naveen Bhat

CA. Naveen Bhat (Expert)
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27 April 2011 If you have shown the TDS in earlier year as assets then you need to credit the refund against the same assets. Interest will be credit to P&L. So entry will
Bank A/c Dr
To advance Tax (Ay XX-XX)
To Interest Income.

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Neelam Gupta

Neelam Gupta (Querist)
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27 April 2011 I couldn't understand this entry. The TDS category is TDS deducted on Commission. So i just Simply do below entry in tally

Bank A/c Dr.
To TDS(09-10)

Is this right entry

CA. Naveen Bhat

CA. Naveen Bhat (Expert)
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27 April 2011 Yeah you are right. However you also need to consider the interest income on refund amount.

Neelam Gupta

Neelam Gupta (Querist)
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27 April 2011 may i know what is interest Income

CA. Naveen Bhat

CA. Naveen Bhat (Expert)
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27 April 2011 Whenever Income tax refund is granted by IT department, they also give interest on it. To ascertain the interest amount you need to refer the Intimation U/s 143(1) or the assessment order received with the refund cheque.

Neelam Gupta

Neelam Gupta (Querist)
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27 April 2011 Thank u so much Naveen for giving me such valuable Information. Good Day :)

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