Please help me with journal entry for the following case :
Our profit for financial year 2011-2012 was Rs 5193.51 Income tax calculated on this came out to be 1610 INR . this income tax was paid from my bank account to government on 29/09/2012.
Obviously profit for the year 2011-2012 will be 5193.51. Does 1610 INR for tax goes into expenses for year 2012-2013 ?
Let me know.
Thanks,
Divya
You should have created provision for income tax for lats year.
So, in current year, the same would have been paid out of that provision only.....
Agreed with Sumeet..
U cant claim Income Tax as an expense.
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