Income tax provision

Provision for income tax is current liabilities

On 31st march you make entry as follows

Income Tax A/c Dr
To Income Tax payable A/c Cr
( Being provision for Income Tax made )

Income tax payable A/c under head Provisions libility side Balance sheet .

Next year after assessment when you pay tax
entry will be

Income tax payable A/c Dr
To Bank A/v Cr
( Income tax for Last F.Y deposited )

Any short/excess provision should be debited/credited to p&l.

Income tax (exp) a/c

to. income tax provision(current liabilities).