Treatment of income tax refund
This query is : Resolved
06 June 2012
pl. tell me accounting treatment of income tax refund
06 June 2012
Tax refund is not an Income you can credit the a/c head income tax refundable if you have created it or in proprietorship / partnership can be adjusted in drawing
06 June 2012
The following is the whole chain of transactions:
1. Advance Tax
Advance Tax AY A/c Dr
To Bank
2. TDS
Bank A/c Dr
TDS Receivable A/c Dr
To Debtor
3. Provision for Income Tax
P&L A/c Dr
To Provision for Income Tax
Let us assume the following figures:
Advance tax - Rs. 10 lakh
TDS - Rs. 20 lakh
Final tax liability - Rs. 15 lakh
Refund - Rs. 15 lakhs
4. Refund
Provision for Income Tax A/c Dr 15 lakh
Bank A/c Dr 15 lakh + Interest
To Advance Tax 10 lakh
To TDS Receivable 20 lakh
To Interest on Refund
1. Advance Tax
Advance Tax AY A/c Dr
To Bank
2. TDS
Bank A/c Dr
TDS Receivable A/c Dr
To Debtor
3. Provision for Income Tax
P&L A/c Dr
To Provision for Income Tax
Let us assume the following figures:
Advance tax - Rs. 10 lakh
TDS - Rs. 20 lakh
Final tax liability - Rs. 15 lakh
Refund - Rs. 15 lakhs
4. Refund
Provision for Income Tax A/c Dr 15 lakh
Bank A/c Dr 15 lakh + Interest
To Advance Tax 10 lakh
To TDS Receivable 20 lakh
To Interest on Refund
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Taxable or Tax exempt
- CAPITAL GAIN BASE ON NOTIFICATION
- Form 140 tds
- NRI starting business in India
- ITDS U/S.194T of Firm
- ADVANCE PAYMENT OF ADVOCATE
- TDS ON EMAIL DOMAIN SERVICE BILL
- Eway bill not cancelled within 24 hous what can be due
- EXPORT COMMERCIAL INVOICE HSN CODE
- Capital gain on sale and purchase of plot
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
