Received Income tax refund for f.y. 2009-2010
please suggest which head entries to be accounted of:
interest of income tax refund ??????
income tax refund after interest ???????
If party had not made or create provisions for f.y. 2009-2010 ??????
Effect of status like properiotorship / firm / companies ?????
Pl..thanks in advance...
If provision for tax not made, entry for refund would be
Bank a/c dr.
To Income Tax refund a/c (group this ledger under p&L a/c other incomes)
(being refund of income tax paid...)
If provision made in previous year, even then there would not be any change in entry, as in the year of ,making provision entry would have been,
Income Tax a/c dr (expense) (charge to p&l)
To Advance Tax paid a/c (if any paid)
To bank/cash a/c (balance self assmt tax)
So in case of refund entry would be same as mentioned above
Bank a/c dr.
To Income Tax refund a/c (group this ledger under p&L a/c other incomes)
CAclubindia
