Treatment of tds and advannce tax in balance sheet

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 August 2013 A senior Citizen who is a pensioner and also owns a proprietor business deposits advance tax from his current account and TDs deducted is shown in the asset side of the balance sheet at the time of preparing balance sheet upto 31-3 --. What is the treatment of that TDS and advance tax in the next FY balance sheet.Is it necessary to treat the same every year or it can be treated once the ITR of that FY is treated.

2.Can the refund received after the assessment of that particular years ITR BE brought in to bussines as capital introduced to increase the capital account.

pls provide appropriate entries to be passed at the time of treatment.

CA Kumar Mukesh

CA Kumar Mukesh (Expert)

22 August 2013 TDS & Advance taxes should be knocked-offs against tax tax liabilities, whenever you received any Intimation u/s 143(1)(Normally it take year form the end of relevant assessment year)

The required adjustment will be

Capital A/c Dr (Amt. of Tax liability)
Bank A/c Dr (In case of Refund)
To Tds
To Advance Tax
To Interest on Income Tax (by interest Amt)
To Bank (In case of Demand)

Regards,