Provision for Income tax

Proprietor have to file ITR  as an individual only normaly.

If they have paid advance tax then book the entry accordingly.

In my view there is no need to make any provision as we see in company.

Correct me if i am wrong.

In my view, It is not mandatory to provide provision for income tax for a proprietory concern.

Originally posted by : Anjaly.P.A
	In my view, It is not mandatory to provide provision for income tax for a proprietory concern.

AGREED

Agreed with tushar & others also not necessary to make such provision but if there is any advance tax or Tds same may be adjusted.

thanks for the reply,well u say TDS aur advance tax needs to be adjusted ,but,suppose his tax liabilityy is of 5000 and the TDS deducted is 200000.whether the whole TDS amount will treated as current asset or the net of provision TDS amount.

AGREE WITH ABOVE SHOW ALL TDS

AGREE WITH ANJALY

Originally posted by : Anjaly.P.A
	In my view, It is not mandatory to provide provision for income tax for a proprietory concern.

Agreed

It is not mandatory for proprietory concern to provide provision for tax

Its absolutely depends on the proprietor...No legal requirement for creating provision for tax in case 

of proprietorship...

Hence if he wants to then he can otherwise not...

correct

In india there is no law governing Proprietorship concern, and accordingly Provision for Income tax is not mandatory as business and assessee are different.