In case of Private Ltd company Gross total income is say Rs 61 lakhs and tax payable is Rs 18.85 lakhs. The TDS and Advance tax amount is Rs 21 lakhs.
In this case is it required to make provision for Income tax as the net position is refund of Rs 3 lakhs? if yes what will be the amount of provision?
Provision for income tax does not mean that amount has to be paid.
Case 1. If there is TDS and Advance Tax deposited then (a) if it is higher then Tax than there is refund (b) else rest amount with interest is taxable.
Case 2. No TDS or Advance Tax then obviously tax amount plus its interest has to pay.
In your case Total tax paid is greater than provision so there is refund.
Companies are required to provide for all liabilities , hence provision for Income tax is to be made in books , check AS 22 which will be useful for further details
if shares in name of Father & Mother jointly (Father is first holder) is given to son after the death of father. will the capital gain received by son will be clubbed with mother ?is this amounts to inheritance / Gift / transfer ? though LTCG is exempt U/s 10(38) and Dividend is exempt U/s 10(34) will it be clubbed with mother or assessed under son (Son is not minor) if any case law or judgement please let me know
Show the TDS and advance tax as current assets. Provide 18.85 lacs in current liabilities and provisions under provisions.
Do not recognise refund unless you have a refund order as a base document.
Dilip in ur case, the shares will be inherited to the son and will not be clubbed with the income of his mother .........
Regards
Varun Makhija
CAclubindia
