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Provision for Income tax

rahul (article) (34 Points)

01 July 2011

Is it necessary for a proprietorship concern to create provision for tax or is there any alternative.

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13 Replies

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 01 July 2011

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.

Anjaly.P.A ( Article( CA Final)) (221 Points)
Replied 01 July 2011

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

1 Like

CA. Roopali Kadam (Jobs on assignment basis.) (1453 Points)
Replied 01 July 2011

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

AGREED

shaishav soni (CA final) (348 Points)
Replied 01 July 2011

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

rahul (article) (34 Points)
Replied 01 July 2011

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.

Anjaly.P.A ( Article( CA Final)) (221 Points)
Replied 01 July 2011

In my view, it is better to show the whole TDS in the accounts. Only then Form 16A will tally with accounts.

valji (Accounts manager-MBA) (2150 Points)
Replied 01 July 2011

AGREE WITH ABOVE SHOW ALL TDS

AGREE WITH ANJALY

Mukesh Kumar Singh (CA-FINAL) (4094 Points)
Replied 01 July 2011

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

Agreed

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 01 July 2011

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

SANJAY JAIN (sanjay.jain_sidhu1989@yahoo.com) (30 Points)
Replied 01 July 2011

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

Anvesh Desai (Chartered Accountant) (156 Points)
Replied 01 July 2011

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...

bipinchandra (article) (60 Points)
Replied 02 July 2011

correct

CA JAGJIT (Cleared CA in first Attempt) (142 Points)
Replied 02 July 2011

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