Tax refund entry

Hi friends,

Could please explain me the entry and treatment in books of Tax refund shown in the prior year ITR form.Should i credit it into P&L or show as a receivable only?Im confused.

Replies (9)

Tax Refund from Income tax department should maintain as Advance Tax Paid account in your balance sheet .

Simple JV

 

Bank A/c Dr

    Income tax advance A/c  Cr

 

 

 

 

I meant what if tax refund is not yet recieved.what would be the journal entry in that case??

If not yet received, it should be

Income tax refund receivabe_Dr

        To TDS/Adv Tax paid

IT receivable DR

TO ADVANCE TAX

Ok thanks:-)

How to maintain tds receivable account and where to shown it because somebody show it under capital account and some shown it under assets plz provide complete entry .

Tds receivable ,tax paid & tax refund and proper disclosure

How to maintain tds receivable account and where to shown it because somebody show it under capital account and some shown it under assets plz provide complete entry .

Tds receivable ,tax paid & tax refund and proper disclosure

Bank Account  Dr.

    To Advance Tax/TDS
    To Interest on I.T. Refund 

 

Hi all

Interest on Income tax refund is to be shown under Profit & loss account & For TDS Receivable amount should be Reduced from particular Year TDS Receivable & accordingly Provision for tax for the particular Year will be reduced or will be debited 

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