28 May 2008
SIR, I WANT TO KNOW ACCOUNTING TREATEMENT OF PROVISION FOR INCOMETAX, TDS RECEIVABLE, MAT. WHAT ENTRY SHOULD PASSED AS THE YEAR END(31ST MARCH). INCOME TAX ASSESSMENT IS NO COMPLETE. CAN I ADJUST TDS WITH PROVISON OF INCOME TAX IN BALANCE SHEET OR SHOW BOTH SEPERATELY.
income tax a/c dr. 900 to provision for income tax 900
after filing the return, you should adjust all such accounts like income tax provision, tds receivable and advance tax etc. and balance should be trfd in tax payable or tax refundable a/c, as the case may be.
example:
income tax provision dr. 900 tax refundable dr. 100 to advance tax 800 to tds receivable 200
means you make entry simply as you have shown tax in your i.t. return.
you don't need to kept open these account merely for sake of assessment, tds certificates will cater to that purpose.
CAclubindia
