What is income tax refund treatment...?

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SOMNATH B. Jambe

SOMNATH B. Jambe (Querist)
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27 December 2013 Sir pls tell me the income tax refund entry and how I give treat this amount in my book

Nikhil Kaushik

Nikhil Kaushik (Expert)
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27 December 2013 depends on how you made the entry at the time of paying the tax.

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SOMNATH B. Jambe

SOMNATH B. Jambe (Querist)
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27 December 2013 Suppose I paid Adv. Tax Rs.1000000
& TDS is Rs.500000. My final Tax Liability is Rs.1100000 then What about Rs.400000 ??????

Nikhil Kaushik

Nikhil Kaushik (Expert)
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27 December 2013 that will reflect as an asset on your books.

Ganeshbabu K

Ganeshbabu K (Expert)
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27 December 2013 Cr.advance tax paid 10lakhs
Cr.TDS receivable 5lakhs
Dr.provision for tax 11 lakhs
Dr.income tax refund receivable 4lakhs
.
.
when ever refund received from department
.
.
pass bank receipt
.
.
Dr.Cash A/c 4lakhs+interest
Cr.income tax refund receivable 4lakhs
Cr.interest incomeA/c interest(indirect income)

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SOMNATH B. Jambe

SOMNATH B. Jambe (Querist)
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27 December 2013 Thank u Sir.

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