31 July 2010
YES YOU ARE RIGHT INTERET WILL TREATED AS INCOME FROM OTHER SOURCES.REFUND AMOUNT IS NOTHING BUT EXCESS TAX WHAT YOU PAID EARLIER. THIS IS NOT TAXABLE.
03 August 2010
Refund amount need to credt against Income tax refund receivable (asset)in the books of the company. Some short / excess received should be transferred to the profit & loss a/c.
03 August 2010
If in books of company , Provision for income and advance income tax & tds is already adjusted and net income tax refund a/c is stands, then amount of refund credited to such a/c and balance short/excess t/f to profit & loss as Mr. Aditya ji speified above,
if provision for income tax and advance tax & tds for that year is stands as it in books, then you have to make entry
Provision for Income tax Dr. Bank A/c Dr. To Advance Income tax & TDS To Interst on Refund A/c To profit & loss (if may be debited also in case of short provison)
CAclubindia
