Provision for income tax

is it compulsory to create provision for income tax in case of individuals or partnership firms? if it is not done what 'll be the after effects?

Replies (4)

Hi , Not compulsory to make the provision for income tax for the tax purpose as it is also disallowed under the provision of section 40 but as per the accounting standard 22 I.e accounting for tax purpose following accrual principle we need to record the provision for income tax . 

ok, but if someone forgets to create provision, will it be a big deal? the thing is if i create provision now then i have to revise itr.

Thanks Mr. Goyal..

But i have a query .... Accounting starndars are also applicable to Individual and partership Firm ??  If yes

Arundhati have to revise thier accounts and income tax returns because thier accounts are showing true and fair picture.

Kindly advice

@ Arundhati

 

Look ITR will be filed for the date up to 31st March right but if afterwards you wants to create provision that you have to do so w.e.f from 01st April i.e. it will not effect the previous balance sheet as well P&L

So there will be no requirement to revise itr. If you want to show the effect from previous year than it must be done before filing the ITR otherwise Revising the ITR and B/s P&L just for creating a provision for IT which is disallowed Expenditure is not advisable.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details
Company
17 September 2026
Chartered Accountant

Dass Gupta & Associates

Gurgaon

CA

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details