27 April 2011
If you have shown the TDS in earlier year as assets then you need to credit the refund against the same assets. Interest will be credit to P&L. So entry will Bank A/c Dr To advance Tax (Ay XX-XX) To Interest Income.
27 April 2011
Whenever Income tax refund is granted by IT department, they also give interest on it. To ascertain the interest amount you need to refer the Intimation U/s 143(1) or the assessment order received with the refund cheque.
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