income tax paid in advance

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PRAMOD PANDIT M.COM , CA FINAL

PRAMOD PANDIT M.COM , CA FINAL (Querist)
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25 July 2009 how the treatment of advance tax paid at the time of finalisation of account for the current year?

Shyam Lal Naik

Shyam Lal Naik (Expert)
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25 July 2009 Normally carried forward under forward Current Assets. It is adjusted with Provision for Income Tax, on completion of assessment.

Abhishek Mohta

Abhishek Mohta (Expert)
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27 July 2009 It depends on the company policy. There are two way of showing the same:

1. Shown under Current Assets with Tax payable shown under current liabilities side

2. The tax liability can be shown as net of Advance Tax or vice versa.

The same treatment will be done for TDS deducted by parties.

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