Incom tax refund entyr

This query is : Resolved

Sagar Das (Querist)
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07 June 2014 Dear all ,

my concern has received a income tax refund of rs. 3000 (For Assessment year - 2013-14), so, what should be the accounting treatment / journal entries for this ?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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07 June 2014 Bank a/c ...dr 3,000
to Income tax refund a/c 3,000

this is assumes it is non corporate entity and sole prop.

Sagar Das

Sagar Das (Querist)
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07 June 2014 If this a corporate entity , then ?
& under which group the income tax refund a/c will be open ?

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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07 June 2014 if corporate then it will be aadjusted against prov for tax which was created earlier.

income tax income will be indirect income

Ganeshbabu K

Ganeshbabu K (Expert)
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07 June 2014 Dr.BankA/c
Cr.income tax refundable
Cr.Interest on tax refund
.
.
generally provision for tax will be adjusted with TDS receivable
.
if provision for tax is less than tds receivable and advancetax(if any) there will be debit balance(net) here
.
.
this should be adjusted with BAnk account recognising interest income seperately as indirect income

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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07 June 2014 income tax refund may not every time be tds recievable for corporates.