How will journlise income tax



how will journlise income tax entery ? is it reduce profit or cpaital withdrwal

 
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Founder of IndiaITR.com

Income Tax is charged to Profit and loss account. Therefore, it will reduce profit.
 
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ca student

I think that INCOMETAX not charge with profit and loss so it will not any such treatment just payment voucher or peovision will create

Total likes : 1 times

 
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ca student

I think that INCOMETAX not charge with profit and loss so it will not any such treatment just payment voucher or peovision will create
 
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for eg i paid tax of 16-17 and shown as advance tax but now in 17-18 in my b/s assest side shows b/f advance tax now how i wll journlise it will journlise in p y 16-17 or in year 17-18
 
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on 31st march 2017 show provision of income tax by debiting profit n loss account....in 17-18 reverse provision by crediting advance tax and cash payment if any..
 
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(TAX CONSULTANTS - AUDITORS)

No...

Income Tax Paid or Payable is not debited in PandL account...

It's apply to capital account....
 
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(TAX CONSULTANTS - AUDITORS)

If you create provision entry on 31st March...

Journal Entry :

Dr. Capital Account - XXXX
Cr. Income Tax Payable A/c - XXXX

At the time of filing / Payment create Payment Entry :

Dr. Income Tax Payable A/c - XXXX
Cr. Bank A/c - XXXX.



If you can't create provision at year ending then no need to worry... Just pay the tax and create "PAYMENT" entry in capital account and Give NARRATION.

THAT'S ALL...

GOOD LUCK...

Total likes : 2 times

 
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CA - Final

There is nothing wrong in charging it to p&l account. Anyways the net profit will be again transfered to capital account.

In case of other than proprietorship, we charge it to p&l only. Hence passing through p&l is the correct way.
 
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(TAX CONSULTANTS - AUDITORS)

Originally posted by : Ajit Hegde
There is nothing wrong in charging it to p&l account. Anyways the net profit will be again transfered to capital account. In case of other than proprietorship, we charge it to p&l only. Hence passing through p&l is the correct way.

Dear please consider your reply with once again. Also discuss to seniors with your reply... GOOD LUCK....
 
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