Treatment of tds and advannce tax in balance sheet

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radht

Self

39 Points Posted on 21 August 2013

A senior Citizen who is a pensioner and also owns a proprietor business deposits advance tax from his current account and TDs deducted is shown in the asset side of the balance sheet at the time of preparing balance sheet upto 31-3 --. What is the treatment of that TDS and advance tax in the next FY balance sheet.Is it necessary to treat the same every year or it can be treated once the ITR of that FY is treated.

2.Can the refund received after the assessment of that particular years ITR BE brought in to bussines as capital introduced to increase the capital account. pls provide appropriate entries to be passed at the time of treatment.

Replies (2)

sreenath

Articled Assistant

203 Points Posted on 22 August 2013

IF you are claiming the refund please show the same in Current Assets, once the refund granted you can credit the same to these TDS & Advance Tax Account

TDS & Advance Tax Entry

TDS Receivable A/C Dr XXXXXXXX

Advance Tax A/C Dr XXXXXXX

To Bank XXXXXXX

To Customer XXXXXXX

Refund Received

Bank A/C Dr XXXXXXXX

To TDS/ ADVANCE Tax A/C XXXXXXX

Remaining Balance Transfer to Capital Account either (Debit or credit)

radht

Self

39 Points Posted on 22 August 2013

But the ITR is filed after combining together the income from pension, bank interests and business income and the total refund is claimed after combining all the incomes. Then how can we show the refund claimed in the Current Asset side . Please enlighten .