Accounting Entry when income tax paid by Company

When there is a short or excess provision of income tax as accounted for in audited accounts per Co Act vis a vis Income Tax Act, how do we account for the same after account closing by A COMPANY?

Replies (3)
Quick Summary
This discussion explores how to handle accounting entries for income tax when there are discrepancies between the provision in audited accounts and actual payments under the Income Tax Act. It covers adjustments for deferred tax provisions and the accounting treatment for short or excess tax provisions after account closure. The conversation touches on whether corporate taxes are typically paid in arrears.

Corporate tax is paid with adjustments from deferred tax provisions and account accordingly. You'd get better results of you ask this question in tax section. 

There is short or excess providion as accounted for.

Current taxes are like 

Dr. Current taxes 

Cr. Current taxes payables

Are taxes paid in arrears of on year like I've read? Thanks to anyone who demistify this.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 28 July 2026
Article/Intern/Semi-Qualified/Fresher B.Com

VNSS & Co

Mumbai

Others

View Details
Company
ARTICLESHIP 10 July 2026
Article Assistant

N S Gokhale & Co

Thane

CA Inter

View Details
Company
28 July 2026
Senior accountant

RJ Public School

Bengaluru

B.Com

View Details
Company
ARTICLESHIP 16 July 2026
Article Assistant

Sahil Agarwal & Company

Mumbai

CA Inter

View Details
Company
06 July 2026
Accountant

Agarwal Anoop and Associates

Noida

CA Final

View Details
Company
29 July 2026
ACCOUNTANT

ONESTEP GST SOLUTION

New Delhi

B.Com

View Details
Company
06 July 2026
Chartered Accountant (Indirect Taxation)

Gowra Ventures Pvt Ltd

Hyderabad

CA

View Details
Company
Featured 16 July 2026
Semi Qualified Company Secretary

Vakilsearch.com

Chennai

CS

View Details
Follow