Income tax payment and journal entry ?

Page no : 2

Akshaydeep Tarachand Dhoot (Account and Audit Assistant) (33 Points)
Replied 01 September 2012

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 (student) (38 Points)
Replied 17 December 2012

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 (Life iz Hard; I'm Harder) (1178 Points)
Replied 05 June 2013

Please tell me the entry/treatment where tax paid exceeds provision for tax(income tax obviously) and vice versa.

Navin Narnaware (3 Points)
Replied 19 February 2018

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 (Practice) (590 Points)
Replied 20 January 2021

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.

dibyendu santra (2 Points)
Replied 22 January 2021

if i have tds 20-21 is 12500, income tax payable is 15000, 2500 payment by bank, how to entry this amount, on journal

shruti kharade (2 Points)
Replied 17 January 2023

Hello Sir,

What is the entry for TDS refund, if my Refund amount is more than tax liability for that FY, in case of private limited company, like we adjusted tax payment to capital account in case of proprietership ???

Financial Year 2021-22,

TDS Amount is 15000,

Tax payable for that year, after finalisation is 10000,

Received refund after return filed is 5000,

Entry for 10000 in books for FY 2022-23, where TDS receivable showing 15000, but received 5000 in FY 22-23.