I want to know the accounting treatment of interest paid on income tax i.e
Interest on Income Tax A/C Dr To Bank (At the time payment of interest)
Profit and loss A/C Dr To Interest on Income Tax (At the time of closing books)
my confusion is that whether the head interest on Income Tax will be shown below the line/above the line in the Profit and Lose Account of the company. Which option seems to be more appropriate
CAclubindia
