Income tax refund entry

bank ac - --  -- - - - - - - -  -dr.

to interest of it refund

to general reserve

this should be entry because no provision was made 

if tds is still stands in the books i.e. tds is not yet transferred to general reserve than

bank ac -- - - - - dr.

    to tds recoverable

    to interest on it refund

AGRRED WITH FUTURE CA

hi future ca and wadhera,

thanks for your reply, as you said, the tds recoverable was clubbed in tally for the whole year.  It was not splitted off.  and also how to find out interest and percentage being calculated. kindly explain.

The excess amount received from IT dept is a liability, should be repay to the dept, whenever it asked. so the excess received shoud be shown as a item undre the head of current liabilities.

if  the excess is not refundable, the same should be treat as income and should be disclosed as a extrodinery item as per AS-5

amt. in excess of your claim could be treated as interest

In Tally under which group IT refund shall be taken?....
1) In case of individual

2) In Case of Company..