Sir,
please provide the entry in books of account how to make the entry provision for income tax
4 Replies
CA. Sourav Sarkar
(Chartered Accountant )
(24588 Points)
Replied 07 January 2021
Provision for income tax is current liabilities
prasad Nilugal
(3924 Points)
Replied 07 January 2021
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 )
Giridhar S Karandikar
(Team Lead)
(7553 Points)
Replied 07 January 2021
Any short/excess provision should be debited/credited to p&l.
Krishna Chaudhary
(Accountant)
(4531 Points)
Replied 09 January 2021
Income tax (exp) a/c
to. income tax provision(current liabilities).
to. income tax provision(current liabilities).
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