Team Lead
7558 Points
Joined November 2011
Please refer to the I-T Return for thE A.Y. relating to whihc the refund is being received. In that check the final tax liability that is coming.
In the subsequent year after the year to whihc refund relates, the following entry was requried to be passed:
Provision for I-T Dr xxx
I-T Refund Receivable Dr xxx
To TDS Receivable xxx
To-Advance Tax xxx
To- Excess provision on I-T written back xxx
Now when the refund is received post teh following entry:
Bank A/c Dr xxx
To- I-T Refund Rec xxx
to- Int on I-T Refund xxxx
If thE above entries were not being passed in 2009, then post the entry as follows:
Bank A/c Dr 800000
Prov for I-T Dr 700000
to- TDS receivable 1500000