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How to deal withexcess provision for tax and interest on tds

Accounting Entries 329 views 1 replies

Provision For Tax of a Private Limirted Company for AY 16-17  Rs.40000

Actual Tax Liability AY 16-17 Rs. 44000 ( including Interest of Rs. 5000 )

How to enter Excess Provision of Rs 1000 and Interest of Rs 5000 on late payment of TDS (whether an allowable expense and if allowable then under which head

If the Excess Provision is to be adjusted with current years provision for tax then in AY 18-19, won't there be any short provision of Rs.1000.

Replies (1)
You can debit directly to Income tax paid account with Narration.

Also the Late Payment Interest is disallowed. So, Now you can enter the value on TDS interest also your is disallow in computation...


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