Accounting treatment

Please can anyone tell me the accounting entry for the Income Tax Paid Under the Tax Demand u/s 154 ???????????

How we ll account for this in tally

 

Replies (3)

Preeti,

 

you can adjust it to the  tax relating to that year  in the balance sheet

 

Tax payable A.Y ____   Dr

  to Bank a/c

 and then finally transfer the whole amount to capital a/c once the asst is fully over

But Tax has already been paid in relation to Ay 2010-11, And it has been paid in ay 2013-14...

 

yes that is correct, but then you will have the amount of tax pertaining to 10-11 standing in the balance sheet no...you can add this amount to that account and then finally transfer it to capital account

 

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