Become a Govt. Certified GST Practitioner in just 60 hrs. Register Now!

Income tax refund

Ranvijay Rajbhar (Accountant) (61 Points)

21 March 2013

I just received income tax refund for the FY 2009- 10. i want to know what should be the accounting entry in my company books? if entry will be ,

Income tax refund Dr

TO Bank

then Income tax refund will come under which head in tally??

~Please reply

Reply
Follow
Share

5 Replies

Giridhar S Karandikar (Team Lead) (7553 Points)
Replied 21 March 2013

When the I-T Refund was being claimed during the eyar of filling the return, then in that Year all the prepaid Taxes shall be netted-off against the Provision for TAxation and excess tax paid if any shall be shown under Current Assets as Income-Tax Refund Receivable(For F.Y.).

Now when you receive the refund then the following entry will be passed:

Bank A/C Dr xxx

To- I-T Refund Receivable xxx

To- Interest on I-T Refund xxx

Interst of Refund shall be under indirect Income & sahll be taxable.

As per REvised Schedule VI, from F.Y. 2011-12 & onwards I-T Refund shall be shown under Other Current Assets and shall be shown as 'Income-Tax Refund Receivable(F.Y.)

5 Like