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is the logic correct

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(Querist)
08 January 2009 why the Partners' capital account Dr why not to expenses account can i pass following entry
(31/3/2008) jv
income tax dr (indirect expenses)
income tax payable cr (provision)
1/9/2008 payment
incometax payable dr
cash/bank
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CA Parvin Ahuja

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CA Parvin Ahuja (Expert)
08 January 2009 Any amount paid as income tax or wealth tax is not allowed as expenditure hence it can not be claimed as expenditure.
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CA Chaitanya

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CA Chaitanya (Expert)
08 January 2009 It is not an allowable expenditue under the Income Tax Act.
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CA Chaitanya

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CA Chaitanya (Expert)
08 January 2009 Though it passes that entry, Income tax has to be added to the net profit while calculating Income tax.

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