What is income tax refund treatment...?

This query is : Resolved

Report Abuse Follow Query Ask a Query

SOMNATH B. Jambe

SOMNATH B. Jambe (Querist)
Follow

27 December 2013 Sir pls tell me the income tax refund entry and how I give treat this amount in my book

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

27 December 2013 depends on how you made the entry at the time of paying the tax.

Message likes : 1 times

SOMNATH B. Jambe

SOMNATH B. Jambe (Querist)
Follow

27 December 2013 Suppose I paid Adv. Tax Rs.1000000
& TDS is Rs.500000. My final Tax Liability is Rs.1100000 then What about Rs.400000 ??????

Upgrade to CAclubindia Pro. Subscribe Now!

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

27 December 2013 that will reflect as an asset on your books.

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

27 December 2013 Cr.advance tax paid 10lakhs
Cr.TDS receivable 5lakhs
Dr.provision for tax 11 lakhs
Dr.income tax refund receivable 4lakhs
.
.
when ever refund received from department
.
.
pass bank receipt
.
.
Dr.Cash A/c 4lakhs+interest
Cr.income tax refund receivable 4lakhs
Cr.interest incomeA/c interest(indirect income)

Message likes : 1 times

SOMNATH B. Jambe

SOMNATH B. Jambe (Querist)
Follow

27 December 2013 Thank u Sir.