Advance Tax & Provision for Tax

Journal Enteries

When You Paid Advance Tax

Advance Tax Paid _ _ _ _ Dr.

        To Cash_ _ _ _ _ _  _ _ _ _ _ _ _

(For Payment of Advance Tax)

When Provision Made for Tax

P & L A/c _ _  _   _ _    _ _ _ Dr.

             To Provision For Tax  _ _ _ _

When Liability Calculated

then

Provision for Tax _ _ _ _  _Dr.

         To Advance Tax Paid_ _  _ _ _

Hi,

Provision for income tax refers to the line item in the profit and loss statement. Income tax is a broad term and could mean current taxes (taxes actually payable to Government), Tax expenses/provision for tax- taxes reported in the P&L or deferred taxes (difference between current taxes and tax expense).