Tax Assistant (Accounting Technician CA
8311 Points
Joined April 2008
Supppose IT Refund is Rs.165000 in which Income Tax is Rs.150000 & Interest is Rs.15000 then the entry will be
Bank A/c Dr 165000
To TDS / IT Refund(Loans & ADvances) A/c 150000
To Interest on IT Refund (Indirect Income ) A/c 15000
It is to be noted that when the income tax which was earlier paid as Self assessment tax or as Advance Tax or it was TDS the entry should have been made as under Loans & Advances :
TDS/SA Tax/ Advance Tax A/c Dr. 150000
To Cash / Bank / Deductor A/c 150000.