tax refunds

This query is : Resolved

brahmam (Querist)
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02 April 2008 we got some refunds relating to various assessment years .cheques dated 17th of march have been received by us on 1st of april.refunds relating to tax payment and interest thereon.what are the entries to be passed and in which year we should account for that? Is there any effect on provision for taxation

Aashish R

Aashish R (Expert)
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02 April 2008 Bank a/c Dr
To Income Tax Refundable
To Interest on IT

These entries are to be passed in the year of receipt of refund.
No there is no effect on Provision for Taxation