Adjustment of refund

Assume difference is tax liability then journal entry required is as follows:

Bank A/c Dr...........................Rs.800000

Tax Expence A/c Dr.............Rs.700000

                       To TDS Receivable A/c..............Rs.1500000

Please refer to the I-T Return for thE A.Y. relating to whihc the refund is being received.  In that check the final tax liability that is coming.

In the subsequent year after the year to whihc refund relates, the following entry was requried to be passed:

Provision for I-T  Dr                     xxx

I-T Refund Receivable  Dr         xxx

To TDS Receivable                                xxx

To-Advance Tax                                       xxx

To-  Excess provision on I-T written back  xxx

Now when the refund is received post teh following entry:

Bank A/c  Dr               xxx

To- I-T Refund Rec              xxx

to- Int on I-T Refund             xxxx

If thE above entries were not being passed in 2009, then post the entry as follows:

Bank A/c  Dr          800000

Prov for I-T  Dr       700000

to- TDS receivable                      1500000