Income tax refund

I just received income tax refund for the FY 2009- 10. i want to know what should be the accounting entry in my company books? if entry will be ,

Income tax refund     Dr

 TO Bank

 

then Income tax refund will come under which head in tally??

~Please reply

Replies (5)
Quick Summary
Income tax refund is recorded by debiting bank and crediting income tax refund receivable. Any interest received is treated as indirect income. Refund receivable is shown under other current assets.

When the I-T Refund was being claimed during the eyar of filling the return, then in that Year all the prepaid Taxes shall be netted-off against the Provision for TAxation and excess tax paid if any shall be shown under Current Assets as Income-Tax Refund Receivable(For F.Y.).

Now when you receive the refund then the following entry will be passed:

Bank A/C  Dr   xxx

To- I-T Refund Receivable                          xxx

To- Interest on I-T Refund                          xxx

Interst of Refund shall be under indirect Income & sahll be taxable.

As per REvised Schedule VI, from F.Y. 2011-12 & onwards I-T Refund shall be shown under Other Current Assets and shall be shown as 'Income-Tax Refund Receivable(F.Y.)

Thanks Giridhar. thank you very much.

what if CY is 2015-16 and income tax refund received of the year of 2013-14.

 

How to make entries for adjusted amount 

 

How do i account IT refund adjusted amount in tally. Need to pass the entries and close the ledger account.

 

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