Sir,
please provide the entry in books of account how to make the entry provision for income tax
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Income tax provision
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Quick Summary
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 )
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).
to. income tax provision(current liabilities).
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