How will journlise income tax

Im sorry to say. I suggest you the same. I do not know who will pass tax provision entry through capital account.

@ RAJA P M SIR  SUPPOSE IT IS A PRIVATE LIMITED COMPANY...IN THAT CASE WE DONT HAVE CAPITAL ACCOUNTS AND WE CREATE PROV THROUGH PNL ACCOUNT ITSELF...

IF U SUGGEST PROV CANT BE CREATED THROUGH PNL THEN HOW WILL THE PROVISION BE CREATED..

FOR OTHER THAN CO. U MAY CHOOSE CAPITAL ACCOUNT....BUT THE QUESTION POSTER HAS NOT SPECIFIED THE ORGANISATION TYPE, THUS I SUGGESTED PNL WHICH WILL BE CORRECT IN BOTH TYPES...

AS PER MY OPINION, TRATMENT OF PROVISION FOR INCOME TAX IS DEPEND ON THE STATUS OF CONCERN. I.E WHETHER IT IS PROPRIETORSHIP OR PARTNERSHIP OR IT IS A COMPANY.

IN CASE OF COMPANY PROVISION FOR TAX HAS BEEN MADE AND SAME HAS BEEN ADJUSTED AGAINST ADVANCE TAX OR TDS OR SELF ASSESSMENT TAX.

WHILE IN CASE OF PROPRIETORSHIP AND PARTNERSHIP FIRM, INCOME TAX HAS BEEN ADJUSTED AGAINST CAPITAL ONLY AS PROFIT AS WEL AS LOSS ALSO TRANSFERRED TO CAPITAL ACCOUNT AT THE YEAR END. SO THERE IS NO DIFFERENCE IN DEBITING PROFIT & LOSS OR CAPITAL ACCOUNT WHILE PAYING INCOME TAX IN CASE OF PROPRIETORSHIP AND PARTNERSHIP FIRM CONCERN.

Income Tax is payable if there  taxable  Profit

Income Tax is an expenditure of the entity. 

Ultimately it  reduces the  profit and in turn  it reduces the balance in  capital account
 
ENTRY

Income Tax Account                        Dr.

Income Tax Payable Account          Cr.

( Being provision for Income

  Tax Payable for the A.Y.    )

Income Tax Account is to be reflected on debit side of I & E A/c or Profit & Loss Account for the period or Year.

Debit in  the Profit & Loss  Account or I  & E A/c  will result in reduced profit 

Indirectly it will reflect as withdrawal of capital.