Income tax refund

This query is : Resolved

Report Abuse Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

07 June 2014 Dear sir
how to do income tax refund entry in books of a/c

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

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 there will be debit balance(net) here
.
.
this should be adjusted with BAnk account recognising interest income seperately

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

07 June 2014 after passing above entries for ind prop business transfer the bal of income tax refund & int on same to capital account.

int income is taxable as income from other sources,

Upgrade to CAclubindia Pro. Subscribe Now!