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Income Tax Paid is Drawings?

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148 Points Posted on 10 August 2024
income tax is an expense as per AS 22 and income tax paid by private limited company is considered as expense in its Books of accounts but income tax paid by the sole proprietor is considered as his drawings. is the treatment of income tax paid by proprietor as drawings is as per AS - 22 ??
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On 10 August 2024 at 09:04 Report
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Profession Business
28207 Points Posted on 10 August 2024
Sole proprietor may consider it as drawings
44 Reply
On 10 August 2024 at 15:39
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3145 Points Posted on 11 August 2024
That income tax is your liability as individual and not of your business, thus when you pay income tax from your business it is treated as drawings from your capital as you are paying off your liability with the money of business
2 Reply
On 11 August 2024 at 07:39
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GST Practitioner & Accounts
15093 Points Posted on 11 August 2024
Drawings A/c Dr
To Bank A/c Cr
( personal income tax paid from business Bank account)

Capital A/c Dr
To Drawings A/c Cr
( Drawings transferred to Capital account)
24 Reply
On 11 August 2024 at 07:49
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"Do the Right Thing...!!!"
128152 Points Posted on 11 August 2024
@ Mr Abhishek Kumar Gupta...

Yes, Individual's income tax liability is drawings of the individual. It's not an expenses...
464 Reply
On 11 August 2024 at 16:47


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