Tax On Lottery in Kind

According to me:

TDS is nothing but Income Tax and income tax is non deductible expenditure.

Accounting Treatment:

a) Of he debits the car a/c instead of income tax then whne u claim the same in his return as TDS then what would be the subsequent treatment is a question?

b) He actually needs to debit the Tax Deducted at Source (Asset) A/c or Capital A/c as the case may be instead of Car A/c

So in Short he cannot claim depreciation and accounting needs to be rectified

Dear Rajesh Sir,

Agree with Nicky Sir reply in the present case the treatment in the books is incorrect - Intstead of Car, TDS a/c should have been debited.

Car will be recognised at Nil Value - So Depreciation cannot be claimed.