Income tax payment and journal entry ?

Nitesh Matta (Nothing)     24 August 2012

for Co. prov on income tax is made where as in case of firm n indl files tef'ed to capital a/c (generally)

Sravanthi (CA Final ICWA Final & M.B.A)     24 August 2012

For Advance Tax:

Advance Tax a/c Dr

   to Bank a/c

Advance Tax - Asset

For TDS:

TDS a/c     Dr

   to party a/c

TDS Asset

Sravanthi (CA Final ICWA Final & M.B.A)     24 August 2012

for Tax Provision

P & L a/c   Dr

  to Provision for Tax a/c

Provision for Tax is a Current Liability & Provisions

for Payment of Tax:

Provision for Tax  a/c     Dr

   to Bank a/c

Sravanthi (CA Final ICWA Final & M.B.A)     24 August 2012

for Finalisaion

1,Tax a/c             Dr

       to Advance Tax a/c

       to TDS a/c

Tax is to booked as an Expenditure

2, P & L a/c       Dr

        to Tax a/c

Finally Advance Tax & TDs to be Nil. for Checking Purpose

harish .k (STUDING)     24 August 2012

the above entries are correct

Vineet (Assistant Manager)     24 August 2012

if there is a difference between provision and actual tax paid in that case reversal entry is require(if provision exceed tax)..and if tax part exceed provision in that case nothing needs to be done..please correct if I am wrong..as I am not very sure about it..

R M SHAH (CA)     25 August 2012

Entries shown by Sravanthi are absolutely correct and Vinnet in case where tax exceeds provision entry for short fall of tax of P.Y. is required to be pass in succedding year.

Ramanuj (Accountant.)     25 August 2012

the above entry is correct.