income tax paid

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What will the provision under law - if the provision for income tax paid during the year, is it a expense?

income tax provision made for the year, how should it  be treated?

Replies (3)

 

Provision for tax will be debit to net profit and than net profit will transfer to Reserve & Surplus but provision for tax is not an expense.

but i want to know  if tax is paid what will be treatment in the books as per income tax act

 

At the time of advance tax payment

Advance tax Dr.( loans & advance )

Bank A/c. Cr.

 

At the time of provision for tax.

Provision for tax Dr. ( Current liability )

Advance Tax


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