Hello
I want to pass an entry in tally for tncome tax refund which i received.
I have created ledger 'incometax refund' but what group should it be under?? Is it 'indirect income' or ' capital account' or any thing else?
Internet search gives conflicting answers. So i wanted genuine help
Same goes for professional tax entry of 2500 which i did. What group should i put it under??
Regards
Dilip khambete
As per second query , professional Tax will be
deducted from salary. so pass entry
Salary A/c Dr
To Salary payable A/c Cr
To Professional Tax A/c Cr
( Being salary payable after deducting professional Tax)
So professional Tax will be under Duties and Taxes, Liability side , Balance sheet .
When you pay professional Tax in Govt Account pass entry
Professional Tax A/c Dr
To Bank A/c Cr
( payment of professional Tax in Govt Account)
My question is profesdional tax comes under which group in tally??
Professional Tax will be under Duties and Taxes ( Other) Liability side Balance sheet , I have already written above .
Professional Tax deducted from employees salary, is Liability of the Company to pay in to Govt Account , therefore Under Duties and Taxes .
CAclubindia
