Accounting entries for income tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 June 2013 I want know about all relevant accounting entries passed for income tax.& when (date) should i passed entry for provision of income tax at the time of paying 1 st installment of advance tax or at year end?

Please reply my query.......

Rupesh Jain

Rupesh Jain (Expert)
Follow

22 June 2013 adj entry passed after the filing of income tax return

but final entry of income tax liaility
will generated on assessment order.

Arun

Arun (Expert)
Follow

22 June 2013 Entries for Income Tax
F.y 2011-12
1.At the time of paying Advance Tax:-
Advance A/c Dr. 200000
To Bank 200000

2.At the year end after computation of tax
Income Tax A/c Dr. 250000
To Provision for tax 250000

F.Y.2012-13
If the tax as per return for the f.y. 2011-12 is say 280000

Than the entry in the beginning of the f.y. 2012-13 will be:-

Provision for tax A/c Dr. 250000
Income Tax A/c Dr. 30000
To Advance Tax 200000
To Bank 80000

Second Situation:
Suppose if the actual tax is Rs. 180000

Than Entry in the beginning will be:-

Provision for tax 250000
Income Tax Refund 20000
To Advance Tax 200000
To Income Tax 70000

Upgrade to CAclubindia Pro. Subscribe Now!