LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

TDS Receivable Entry if not made Provision

28 November 2023

TDS Receivable in my books of Rs 55000/- of F.Y. 2022-23

Income tax was made of Rs. 46000/- in F.Y. 2022-23

and I have received refund of Rs 9500/- in the f.y. 2023-24. but we did not make provision of Income tax in the f.y. 2022-23 . so suggest how to do this refund entry ..
I made entry below in F.Y. 2023-24. is correct or not ?

Bank A/c Dr 9500/-
Interest from Income tax Cr 500/-
TDS Receivable CR 9000/-

Income Tax Exp Dr 46000/-
TDS Receivable CR 46000/-

Kindly suggest.. is it correct

Reply
Follow
Share

4 Replies

Yasaswi Gomes new (Finance ) (4479 Points)
Replied 28 November 2023

https://www.hostbooks.com/in/blog/tds/tds-entry-in-tally/#:~:text=TDS%20Receivable%20Entry&text=This%20entry%20is%20passed%20when,during%20TDS%20deposit%20or%20refund.

prasad Nilugal ( GST Practitioner & Accounts ) (14167 Points)
Replied 28 November 2023

Income tax provision is required but any way , In the F.Y 23-24 you pass entry as follows.

Income Tax Exp (22-23) A/c Dr 46000
Income tax refund A/c Dr 9000
To TDS receivable A/c Cr 55000
( Refund after Income tax adjusted )

Refund with interest receipt entry

Bank A/c Dr 9500
To Income tax refund A/c Cr 9000
To Interest on IT refund A/c Cr 500
( Income tax refund with interest)

Anoop Jain (102 Points)
Replied 29 November 2023

Thank You sir for Your prompt response.. but I have a question that How will be close Income tax Payable account in the end of the financial year

prasad Nilugal ( GST Practitioner & Accounts ) (14167 Points)
Replied 29 November 2023

Income tax payable is not actually payable ( I had made necessary corrections in the first entry ) , You Can use A/c Income Tax Expenses A/c ( 22-23) same is adjusted against TDS receivable , which was carried forward from last year and balance is your refund . you Can show Income tax expense( F.Y 22-23 ) under Indirect expenses in P&L of F.Y 23-24 .