Journal entries in books of client

when TDS deducted under section 194N on cash withdrawals exceed 1crore. what should be journal entries?
Replies (1)

If  withdrawal in the  F.Y  exceeds  10000000/-  Tds  @ 2%  will  deducted  as  per section  194N  of the income tax act 1961  . 

J.E  will be 

1)     Cash                               A/c   Dr

        TDS on withdrawal        A/c   Dr      

        To   Bank                        A/c               Cr                                                

(  Being  cash withdraw  form  Bank ,TDS  @ 2%  ) 

TDS  on withdrawal   will  be  under  the   Loans & Advance ( other non current asset )  ,Asset  side  ,Balance sheet  

 

 

 

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