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Income tax payment and journal entry ?


Bhaskar Unnikrishnan CPA CMA

Bhaskar Unnikrishnan CPA CMA (Accounts / Administration)     26 August 2012

Bhaskar Unnikrishnan CPA CMA
Accounts / Administration 
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Good Explanation Sravanthi...
Rajesh

Rajesh (CA Final Student)     27 August 2012

Rajesh
CA Final Student 
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Hi,Vineet

If Tax provision exceeds to Tax paid(Adv tax, TDS) you need to pay in that year by Debiting Tax A/c  Crediting Bank/Cash A/c.

If Tax provision is less than Tax paid(Adv.tax,TDS) you have to claim for refund.

Vaibhav Jandey

Vaibhav Jandey (Life iz Hard; I'm Harder)     27 August 2012

Vaibhav Jandey
Life iz Hard; I'm Harder 
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Originally posted by : Sravanthi

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

thank you my friend for replying,

Like the above explanation could you please tell me the cases where i t provision exceeds tax paid and vice versa. What are the adj that needs to be carried out. Please show entry wise if possible; would be great if you can cite the principles applied.

AASAN HAI

AASAN HAI (STUDENT)     28 August 2012

AASAN HAI
STUDENT 
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WAT WOULD BE D ENTRY IF PROVISON FOR TAX SHORTFALLS IN COMPARISON 2 ACTUAL TAX PAID

Ram Chandra

Ram Chandra (Finance Officer)     30 August 2012

Ram Chandra
Finance Officer 
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When Individual, firm and company pay advance tax

       Advance Tax A/c Dr.      *****

            To Bank A/c   Cr.      *****

When TDS deducted by other parties

         Advance Tax (TDS) A/c Dr.   ****

             To Party Name (Who deducted TDS) Cr.  *****

When Tax deposite under section 140(a) as self assessment 

          Income Tax (for respective assessment year) A/c Dr.  *******

                  To Bank (if there is any payable) A/c Cr.                  *****

                  To Advance Tax A/c Cr.                                                *****

these are sufficent enties if we want some thing special than we make some more entry for due to respective entry

Akshaydeep Tarachand Dhoot

Akshaydeep Tarachand Dhoot (Account and Audit Assistant)     01 September 2012

Akshaydeep Tarachand Dhoot
Account and Audit Assistant 
 33 points

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For Advance tax:

Advance tax a/c             Dr 

To Bank A/c 

For TDS:

TDS a/c                 Dr 

To XYZ a/c 

For Provision:  

P & L A/c                Dr

To Provision for tax a/c

For tax payment:

Provision for tax a/c          Dr

To TDS a/c

To Advance tax a/c

aditya jhalani

aditya jhalani (student)     17 December 2012

aditya jhalani
student 
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entry is correct meanwhile if any difference arises between provision and advance tax or tds then remaining amount paid by crediting through bank a/c
Vaibhav Jandey

Vaibhav Jandey (Life iz Hard; I'm Harder)     05 June 2013

Vaibhav Jandey
Life iz Hard; I'm Harder 
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Please tell me the entry/treatment where tax paid exceeds provision for tax(income tax obviously) and vice versa.

 

Navin Narnaware

Navin Narnaware   19 February 2018

Navin Narnaware

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Drawing a/c Dr to cash a/c

Because...here Owner of the Company will pay tax and he withdrawal cash from business so.. from the rules of accounting if owner received from business i.e Drawing

Cash :- Goes out (Real account) :- Cr

Drawing:- Reciver(Personal a/c):-Dr

Indira Priyadarsini Kota

Indira Priyadarsini Kota (Student)     20 January 2021

Indira Priyadarsini Kota
Student 
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Please go to the following link: https://www.caclubindia.com/forum/advance-tax-entry-end-of-the-year-93616.asp Harpreet over there has explained accounting for taxation very clearly with various examples.

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