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Income tax refund

Rakesh Kalyani (124 Points)

30 March 2019

under which head income tax refund comes? what will be entry once received through bank?

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5 Replies

RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 30 March 2019

You can reverse the Refund amount to Where You booked the TDS** amount.

or

You can book it in proprietor's capital account...

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Sahil Jain (FAFD, DISA, CA) (Practicing Chartered Accountant ) (2476 Points)
Replied 30 March 2019

if provision is made for refund, adjust the refund amount against the provision and interest on refund shall be booked as indirect income.
If no provision is made, then route it through P&L account

RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 30 March 2019

Provision...?? for Refund..?!!

satish (teaching) (2046 Points)
Replied 31 March 2019

on self assessment of income tax, if excess amount paid is over actual tax liability, then excess amount can be consider as refund of income tax.
if entry recorded on self assessment tax, then refund account will arise. this is as part of short term loans and advances.

kajol (Executive) (201 Points)
Replied 01 April 2019

You can receive a tax refund on your personal tax return, but you do not need to record it in your books. C corporations are the only entities that pay income tax directly to the government