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Treatment of income tax paid for the previous year in book of accounts of the next year
I have paid Income Tax of the F.Y. 2014-15 in the F.Y. 2015-16 at the time of submmitting IT Return online. No advance tax was paid in F.Y. 2014-15. But in the Balance Sheet of F.Y. 2014-15 as at 31.03.15, there was no provision of Income Tax to be payable (as current liability).
The query is in the book of accounts of F.Y. 2015-16, how the Income Tax Paid for the previous year i.e. 2014-15 will be treated / entered in the Balance Sheet of 2015-16 as at ?
Replies (4)
First Liability will be created by Debiting the P&L Accounting and Crediting the Provision for Income Tax Account. Then at the time of payment, Provision for Income Tax Account will be debited and Bank Account Will be Credited.
if your business is proprietary , then capital a/c debit income tax credit . Again we need to take Jvs
Income Tax debit and Bank credit
Income Tax debit and Bank credit
You are right Mr. Santu Sen.
Sir,
In case patnership the same thing we need to follow i means to say regarding provion of income tax in books debited to PNL account or capital account
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