plz suggest wat will be the appropriate enrty for the balance income tax refund including the intrest.....
Kalpesh Chauhan,
(Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com))
(8310 Points)
Replied 06 April 2012
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.
Prateek Agarwal
(Sr. Executive - Finance & Accounts)
(1732 Points)
Replied 06 April 2012
Agree with above...
Goutam
(Accounts manager)
(25 Points)
Replied 06 April 2012
Thanks Mr.kalpesh.....it is a great help
CAclubindia
