Income tax provisions

Tax queries 759 views 2 replies

Please Help urgent

Income tax provisions for Ay  2008-09 is 2.10 cr

Advance Tax Paid is 1.74 cr

Tax Liability is 1.94 cr

Tds Receivable is 2.19 lac

How to close the accounts this year.

What is the treatment for excess provision?

Replies (2)

For tranferring advance tax and tds

Provision for income tax Dr
To Tds
To Advance tax

If TDS or advance tax shows debit balance then

Income tax refundable
To TDS
To Advance tax

If after passing all entries provision for income tax shows credit balance

Provision for income tax Dr
To self assessement tax payable

On payment
Self assessement tax a/c Dr
To bank

Excess Provision Transfer to Profit & Loss Account will come below the line....

Provision for Income Tax A/c dr.

To Excess Provision of Income Tax (Profit & Loss A/c)


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