Sonam Sharma (CA final Student) (75 Points)
10 February 2012
Pls tell me about Accounting Treatment of Excess IT refund received against IT Refund Receivable from earlier years......
means in which account I could Credit the Excess Income Tax Refund..................................
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 12 February 2012
The excess amt over the amout actual receivable is the interest earned on the IT Refund against the it refund receivable. The Interest on IT Rrefund should be credited to P&L account & theis interest is taxable. The accounting entry shud be as follows:
Bank Account Dr
To- Interest on IT Redund
To- IT Redund Receivable
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