tax paid for FY 10-11 in FY 11-12 without creating provision last year whether disallowed while computing tax for FY 11-12?
For eg: Tax Liability - 1,00,000'
TDS Asset - 75,000
Tax Payable - 25,000
No provision made in FY 10-11 for Rs.1,00,000. TDS Asset is disclosed in B/s.
Can anyone tell me what are the impacts if we want to write off TDS Asset and how is the tax paid treated in FY 11-12 tax computation?
to the extent i could undrstand
There will no implication on write off of TDS assets whenever the same tax liability will be paid it will automatically will be write off with tax paid.
Just look
TAx Liability=======100000
TDS Assets-----75000
TAX Liablity----25000
Tax Paid--100000
When ever u will file the Income Tax Retuern
TDS Assets will be veriifed from 26AS(from Income site website)
and remaining tax liability will be from Tax liability from ur books of accounts.
other hand if u have not made any provision there will not be any effect but for betterment and fair accounting there should be a provison for tax liability on estimation basis.
and further at the time of filling of Income Tax return there will be Penal interest on non payment of Advance Tax under section 234.(for advance tax as well as inetrest of late paymnet of Tax)
U have to wait for Assessmnt order to reverse TDS Asset.....then if any short provision is there, it should be debited to PL......If 25000 tax paid is debited to PL it should be disallowed for tax computation.......
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dear Ashok J
As i know when we computing Tax we taking ...PBT(Profit before Tax) there is no question of disallowance. although as she said no provision is made in yearc2010-11. Just tel what will be effect of non creating of Provision.
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