Hello experts
My question is
If I have paid advance tax more than the actual tax calculated on profit then what is the accounting treatment of this and the income tax refund due.
And if there is tds opening debit balance then what accounting treatment should be done of that balance?
Please reply as soon as possible
Thanking you
Advance Tax payment
Advance Tax A/c Dr
To Bank A/c Cr
( Advance Tax paid )
Assessment of Income Tax will be next year , On 31 march you have pass entry
Income Tax A/c Dr
To Income Tax payable Cr
( Provision for Income Tax )
Next year on Assessment adjustment entry
Income Tax payable for F.Y A/c Dr
Income Tax refund A/c Dr
To Advance Tax A/c Cr
To TDS payable A/c Cr
( Tax Payable adjusted against Advance tax paid and TDS deducted and balance refund )
Balance Refund Entry
Bank A/c Dr
To Income Tax refund A/c Cr
( refund received received )
Note - Dr balance TDS means deducted by party will be adjusted at time of assessment , So paid Advance Tax and TDS deducted more than Tax payable , hence refund .
I have paid advance tax but no provision has been made till now and there is refund also and tds current year and opening debit balance also now how to adjust it so that my my opening balance could be corrected
Can you give me your contact no. to solve my query
U can send me your contact number by private message
I do not how send private massage .
| Originally posted by : Danish Abbas | ||
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I have paid advance tax but no provision has been made till now and there is refund also and tds current year and opening debit balance also now how to adjust it so that my my opening balance could be corrected |  |
Even if no provision has been made for income tax during the PY, you may make the entries, as suggested by Prasad, during the current year. Just ensure to match the balances as per financials.
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