Income tax provision

Here u will not have any concern regarding income tax as provision for income tax not allowed as deduction

As per accounting,if there is shortfall in provision in previous year,you should debit current year profit and loss account and credit provision for income tax

as per accounting standanrds,shortfall in provision for income tax is not an adjusting event as it does not provide any furthur evidence to determine absolute tax liability.this is because due date for filing of returns for a company would be 30th september and a company should conduct A.G.M by the end of september.so chances for  complete assesment for income tax department is not possible by that date.so ucan not dertermine absolute liability.so u can adjust for respective year

so for eg current year provision for income tax=50000

MAT credit entitlement                                       =10000

current tax liability                                                =40000

add:short provision made in previous year           +2000

total provision for tax in current year to be shown in balance sheet=42000