Provision for income tax

Sir,

Please suggest below entry in books of account is correct or wrong in proprietor firm

Provision for income tax (Capital Ac)
Provision for income tax (current liability)
Replies (4)
Quick Summary
This discussion clarifies the correct accounting treatment for income tax provisions in a sole trader's books. It addresses whether to record it as a capital item or a current liability. The consensus is that income tax provision should be shown under current liabilities, and creating a separate 'provision' entry is generally unnecessary and potentially confusing.

Provision for Income tax is shown under
Current liabilities
Provision for Income tax is shown under


Current Liabilities and Provision.
Kindly elaborate for what u want to pass entry.
No need to make such entry as it is useless.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 07 September 2026
CA Articles

Kothari Jain Patil & Chartered Accountants

Pune

CA Inter

View Details
Company
ARTICLESHIP 16 September 2026
CA Article Trainee

SR BAGAI & Co.

New Delhi

CA Inter

View Details
Company
26 September 2026
Chartared Accountant

pushpganga ventures

Pune

CA

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details
Company
ARTICLESHIP 15 September 2026
Freelance Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
Featured 12 September 2026
Assistant Manager - Finance & Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
09 September 2026
Semi Qualified CA / CA Inter - 2 Groups Cleared

Getmyca Consultant Pvt Ltd

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details