tarun
(CA Final (Gr. 2 Passed) & CS Final)
(332 Points)
Replied 01 December 2011
RAJU
(LEARNER)
(1089 Points)
Replied 01 December 2011
31st March:
Dr. Income Tax (P & L)
Cr. Provision for Income Tax (BS provisions)
Reversal of Provision:
Dr. Provision for Income Tax
Cr. Income Tax ( P & L)
ashish gupta
( student)
(1922 Points)
Replied 01 December 2011
Provison for tax is the amount of provision for the income tax liability
i) Advance Tax Dr.
To Bank A/c
i) P&L A/c Dr.
To Provision for Income Tax
ii) Provision for Income Tax Dr.
To Advance Tax
This Entry is passed at the year end
And in case of short provision book the additional income tax paid as expense
Income Tax F.y. __________ Dr.
To Bank A/c
RAJU
(LEARNER)
(1089 Points)
Replied 01 December 2011
Ashish ji ne examples hi toh diye hai... For excess provision, you need to reverse the original entry to the extent of excess provision. So make entry exactly opposite of the entry that you would have made at the time of making provision. So reversal will be;
Dr. Provision for Income Tax (Balance Sheet item)
Cr. Income Tax (Profit & Loss Account item)
Hope it is clear..
Atul.K.
(IPCC+Service)
(46 Points)
Replied 01 December 2011
| Originally posted by : ashish gupta | ||
 |
ii) Provision for Income Tax Dr. To Advance Tax This Entry is passed at the year end And in case of short provision book the additional income tax paid as expense Income Tax F.y. __________ Dr. To Bank A/c |
 |
Ashish in my opinion these entries are to be done upon actual completion of assessment, not neccessarily at the end of the year.
Correct me if i am wrong.
Vikas Aggarwal
(CA )
(207 Points)
Replied 01 December 2011
In the year of Making Provision say 31.3.2011
Entry Are
Profit & Loss A/c Dr XXX
Provison for income tax A/c XXX
2.In the event of Self Assessement(Payment of Income Tax) say 25/09/2011
Provision for income Tax XXX
To Advance Tax XXX(If Any)
To TDS XXX(If any)
To Income Tax Payable XXX(Balance)
3. If u have created a excess provision on 31/03/2011 then to write off excess provision the following entry must be passed along with Above entry in point 2
Provision for Income Tax XXX
To prior period Items XXX
4.If u created less provision than required then u have u pass the following entry along with entry made in point 2
Prior Period Items XXX
To Provision for Income Tax XXX
Excess or less provision of income Tax should be Debited or crdited in prior period items according to Accounting Standards prescribed by ICAI
The Above are correct in every respect
sagar
(CA Final)
(379 Points)
Replied 03 December 2011
Radhesh Bhoot
(Aspiring CA)
(229 Points)
Replied 03 December 2011
Dea Friends,
i hope the attached file will be helpful for you to understand all the tax related entries....
https://www.4shared.com/document/dGtq-I_G/Accounting_for_Closing_Income_.html
CAclubindia
