Income tax Refund Accounting Entry

This query is : Resolved

Monil Shah (Querist)
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23 April 2009 After the completion of assessmnet the advance tax and TDS are to be adjusted against the provison created for that Assessment year.But what is the accounting entry if

1.Their is Self assessment tax is payable as per assessemnt order.

2.Their is Refund as per assessemnt order.

Please also confirm Where to show the income tax refundable whether under Indirect Income or to reduce the provision for the current year by that amount. Please confirm and suggest.

Shyam Lal Naik

Shyam Lal Naik (Expert)
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23 April 2009 Refund or tax payable arising out of assessment has to be adjusted through Profit & Loss Adjustmant Account.