Books of accounts vs income tax computation

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Hi All,

My Provision for tax and Short Provision provided  total is Rs.472000/-in the accounts,  but my Income tax settled at Rs.744000/- at the filing date pls explain me how should I deal with this Difference Rs.272000/-? should I need to adjust in the accounts ie creating provision again? or leave it off 

 

I filed off the return ie provision for tax in p&l is Rs.472000/- and in the computation it is Rs.744000/- pls suggest me? whether should I need to revise my IT return for the difference provision (I mean creating additional provision which also reduces profit available for appropriation portion as well) pls suggest me clearly. thanking you all 

Replies (4)

Debit Profit & loss a/c and credit Short excess provsion.

Your tax liability         = 7,44,000                              (1)

Provision created     =  4,72,000                             (2)

Income Tax payable =  2,72,000                             (1-2)

 

Income tax payable will shown as a liability . Advance tax paid if any is to be deducted from this Income tax payablee amount . 

Originally posted by : Harshal

Your tax liability         = 7,44,000                              (1)

Provision created     =  4,72,000                             (2)

Income Tax payable =  2,72,000                             (1-2)

 

Income tax payable will shown as a liability . Advance tax paid if any is to be deducted from this Income tax payable amount . 

Agreed.

I suppose u need to file a revised return restating the liability to the new ammout u calculated.....


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