Income tax paid

This query is : Resolved

madhu Reddy (Querist)
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02 October 2012 Dear sir
Income tax paid by the propertior can be dedit under profit & loss a/c ?

Whether the same principle apply to companys or Partnership firms ?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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02 October 2012 Proprietor only the Income tax need to deduct from Capital as drawings

Partnership & Company nee to debit in P&L a/c

CA Suresh Jain

CA Suresh Jain (Expert)
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02 October 2012 In case of Proprietorship the Provision for income tax should be made to arrive at Post Income Tax profit of the business.
In case of Partnership the Income tax payable on profit of the firm is to be debited

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madhu Reddy

madhu Reddy (Querist)
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03 October 2012 Thanks for reply