Plz advise

Efiling 689 views 3 replies

ayesha

mcom

1185 Points Joined June 2011

1.Under which head should we show donation in tally.This is case of individual proprietor.Should it be shown as indirect expense in p &l account .Then he will get double benefit as his profit will become less and also he gets deduction u /s 80G. Or it should be shown as drawings.

2.How to adjust advance tax of last yr in this year's balance sheet when last year that person had no tax payable but tax refund? PLZ HELP

3.WHAT ENTRY TO BE MADE IN TALLY FOR TDS DEDUCTED BY BANK AS IT IS SHOWN IN 26 AS FOR AY 13-14 BUT NOT SHOWN IN BANK STATEMENT.

Replies (3)

Prashant Kini

Article Assistant

154 Points Joined December 2008

1. even if donation is shown as an indirect expenditure then same has to be first added back and then deduction claimed u/s 80G to avoid double deduction. alternatively it can also be shown under drawings. 2. advance tax paid by individual can be debited to his capital account and any refund received can be credited to his capital account on receipt 3. in bank statement interest is credited net-off tds and as such u will have to account for full amount of interest income as per 26AS and then also account for tds.

Deepak Tapse

Accounts Manager - Taxation

1771 Points Joined April 2009

You can open this account under capital account.

v.shankara kumar(Vsk)

Principal

25 Points Joined November 2012

1. Dr Drawings n cr Bank/ cash 2. Advance tax refunded Dr Bank Cr Capital (with) advance tax Cr interest (with int received on late settlement) 3. You have not mentioned TDS on what income. Any way u can pass the entry Bank Dr Net income Capital Dr Tds amt Income a/c Cr with gross income by shankar kumar(vsk)