What will be the Accounting Entry for both the Financial Years in the following scenario?
TDS has not been deducted by mistake on Interest Received on loan given in a particular Financial Year , but the same has been deposited to Central Govt by the loan taker, in that financial year only. Now the TDS will be deducted in the following financial year.
since TDS is being paid to the Cent Govt, then you can pass the TDS entry for the same F.Y. If whole of the amt is being paid to the loan giver inclusive of TDS, then you can raise a Debit Note by passing a JV debiting his account and crediting TDS Payable which would be as follows:
Party A/c Dr
To- TDS Payable
First enty at the time of Payment is
TDS Payable A/c ....... Dr
To Bank A/c ...............
( Being TDS paid on Invoice No....)
At the time of Deduction
Client Account ...... Dr.
To TDS Payable A/c ......
(Being TDS deducted on Invoice No....)
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