Income Tax REfund
This query is : Resolved
31 July 2010
Wat would be the treatment for IT refund including Interest.????
In my opine Intrest would be Income from other sources . but wat abt Refund amount...??
Please guide
In my opine Intrest would be Income from other sources . but wat abt Refund amount...??
Please guide
31 July 2010
YES YOU ARE RIGHT INTERET WILL TREATED AS INCOME FROM OTHER SOURCES.REFUND AMOUNT IS NOTHING BUT EXCESS TAX WHAT YOU PAID EARLIER.
THIS IS NOT TAXABLE.
THIS IS NOT TAXABLE.
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31 July 2010
Refund amount need to credt against Income tax refund receivable(asset)in your books
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31 July 2010
In case of individual, income tax refund can be credited to capital a/c. I.T refund is not taxable. Only interest portion is taxable.
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31 July 2010
Income tax refund is not taxable. only interest on income tax refund is taxable, which comes under the head income from other sources
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31 July 2010
your refund amount is almost calculated in previous year income.... let me know with enty..
income cr...100 (P&L)(80+20)
bank dr..80
tds receiable dr..20 (assets)
now refund come
tds cr...20
int.cr...01 (Income)
bank dr..21
income cr...100 (P&L)(80+20)
bank dr..80
tds receiable dr..20 (assets)
now refund come
tds cr...20
int.cr...01 (Income)
bank dr..21
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31 July 2010
AGREED WITH EXPERTS.
WELL EXPLAINED BY MR. MURTAZA
WELL EXPLAINED BY MR. MURTAZA
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02 August 2010
Sir thanx to all of you for kind reply
As Mr. Palami Sir told that in case of Individual it will br credited in Capital Account...
i want to know the exact treatement of refund In a Pvt. Ltd company..
Plzzz...
As Mr. Palami Sir told that in case of Individual it will br credited in Capital Account...
i want to know the exact treatement of refund In a Pvt. Ltd company..
Plzzz...
02 August 2010
In case of Pvt LTd company,.
Interst on Refund will be taxable as Indirect Income.
Interst on Refund will be taxable as Indirect Income.
02 August 2010
agreed, as indirect income
03 August 2010
Sir sorry but i want to know abt the effect of Refund instead of int. on refund in case of Pvt. Ltd. Comp.
Plzzzz
Plzzzz
03 August 2010
Refund amount need to credt against Income tax refund receivable (asset)in the books of the company. Some short / excess received should be transferred to the profit & loss a/c.
03 August 2010
If in books of company , Provision for income and advance income tax & tds is already adjusted and net income tax refund a/c is stands, then amount of refund credited to such a/c and balance short/excess t/f to profit & loss as Mr. Aditya ji speified above,
if provision for income tax and advance tax & tds for that year is stands as it in books,
then you have to make entry
Provision for Income tax Dr.
Bank A/c Dr.
To Advance Income tax & TDS
To Interst on Refund A/c
To profit & loss (if may be debited also in case of short provison)
if provision for income tax and advance tax & tds for that year is stands as it in books,
then you have to make entry
Provision for Income tax Dr.
Bank A/c Dr.
To Advance Income tax & TDS
To Interst on Refund A/c
To profit & loss (if may be debited also in case of short provison)
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