Provision for Tax

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Querist : Anonymous

Querist : Anonymous (Querist)

18 February 2011 How to determine provision for tax if accounting year is different from income tax year?

Suppose accounting year commences from Jan 10 to Dec 10 but income tax liability is determined for April to March every year.Then how should i account for tax provision in books of accounts as income tax expense for Jan 10 to March 10 has already been settled and tax liability for Jan 11 to March 11 is yet to be provided.

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Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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18 February 2011 Since you ae preparing two account one for Income Tax and other Company Law Purpose. ou have determine provision of taxation for the period the accounts relates