Journal entry for Income tax

Provisional entry for income tax .
One has to make.

Advance Tax payment entry.

Advance Tax A/c Dr ( Current Assets)
To Bank A/c Cr
( payment of Advance tax )


TDS deducted by party entry

Bank A/c Dr
TDS receivable A/c Dr ( Current Assets)
To parties. A/c Cr
( payment received after deduction of TDS)


on 31st March provision for Income tax entry

Profit and loss A/c Dr
To Provision for Income tax A/c Cr
( provision entry)


Provision of tax , Advance tax, TDS receivable will be carried forward to next year. after filling of return and assessment adjustment , tax payable and tax paid entries are as follows.

Provision for Income tax A/c Dr
To Advance tax A/c Cr
To TDS receivable A/c Cr
To Income tax payable. A/c Cr
( after adjustment, tax payable)

Income tax payable A/c Dr
To Bank A/c Cr
( Income tax for privious F.Y paid )

Sequence is not correct.

@ Mr Professional (sabyasachi mukherjee)

Sequence is not correct then You give correct solutions for the query...
Please Please Please Please...

🙏🙏🙏🙏🙏

First pass the original entry with gst clubbed.
Second month end provide for the liability.
Third pay the liability within due date.

Originally posted by : sabyasachi mukherjee
	First pass the original entry with gst clubbed.Second month end provide for the liability.Third pay the liability within due date.

Thanks Sir Ji...

 

But,

Please Provide the correct entries as per above. We will try to learn the accounting procedures...

Hi Raja sir, turnover of one of my client is Rs 1 crore 95 lakh, And his net profit is less than 2.5 lakhs,
So he will have tax audit requirement ?
I need your guidance sir🙏

Originally posted by : saurabh sawlani
	Hi Raja sir, turnover of one of my client is Rs 1 crore 95 lakh, And his net profit is less than 2.5 lakhs,So he will have tax audit requirement ?I need your guidance sir🙏

Yes, you should go with a tax audit. But if your cash transaction is less than 5% you can remain out of audit . But on that condition your net profit will be equivalent to 6% which is not fulfilled by you.   

Yes I agreed to Mr Narendra...

@ Saurabh sawlani...

Yes, The Books fall under tax audit...

He is not competent to do tax audit.