Sonam Sharma (CA final Student) (75 Points)
10 February 2012
Pls tell me about Accounting Treatment of Excess IT refund received against IT Refund Receivable from earlier years......
means in which account I could Credit the Excess Income Tax Refund..................
Vineet Goyal
(Assistant Manager - Finance & Accounts)
(702 Points)
Replied 10 February 2012
How can you receive the excess IT refund? There should be some error in filing IT Return. Please check the same.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 11 February 2012
the excess amount is Interest accured on refunds, and its taxable income.
Vineet Goyal
(Assistant Manager - Finance & Accounts)
(702 Points)
Replied 11 February 2012
If it is interest accrued, I agree with U S Sharma.
Suraj S
(Audit Executive)
(335 Points)
Replied 11 February 2012
The excess amount should obviously be Interest amount. So the entry to be made is as follows:
Bank A/c Dr xxxxx
To IT Refund Receivable A/c xxxxx
To Interest on IT Refund A/c xxxxx
The Interest on IT Refund is to be shown in P&L A/c as Indirect Income and the same is to be shown as Income From Other Sources in ITR
Sonam Sharma
(CA final Student)
(75 Points)
Replied 11 February 2012
thanx all of u.................
CAclubindia
