Income tax entry

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 September 2011 PLZ HELP IN THE FOLLOWING SITUATION OF A PRIVATE LTD COMPANY :

TAX PAYABLE = RS.35000(AS PER COMPUTATION OF INCOME UNDER INCOME TAX ACT)

TDS DEDUCTED STANDING IN THE BOOKS = RS 40,000

I WANT TO KNOW HOW TO MAKE PROVISION FOR TAX ENTRY AND HOW TO PRESENT IN THE PROFIT AND LOSS ACOOUNT AND BALANCE SHEET.

PRAMOD KUMAR RAI

PRAMOD KUMAR RAI (Expert)
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14 September 2011 Provision for tax,. etc. are made through P.L. Appropriation accunt where taxable profit is credited and Provision of Current Tax is made in left side. balancing amount is carried to reserve & surplus in balance sheet.T.D.S. is adjusted in books of account against provision for tax made through P.L.appropriation account