Income tax refund

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CA. Santosh Jain

CA. Santosh Jain (Querist)
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23 February 2009 What is the accounting for income tax refund amount ?

CA. Aryendra

CA. Aryendra (Expert)
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23 February 2009 Provision for Income Tax DR.
To Income Tax

(Being Provision for income tax credited to income tax account as per ITR)

Income Tax DR
Income Tax Refund A/c DR.
To Advance Tax
To TDS Received

(Being Advance Tax & TDS for the year transferred in Income Tax Account & Excess Amount in Income Tax Refund A/c)

Entry on receipt of refund

Bank A/d Dr
To Income Tax Refund
To Interest Redeived

(Being Refund received with interest)