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Books of accounts vs income tax computation

ravi (senior accountant) (507 Points)

04 October 2011

Hi All,

My Provision for tax and Short Provision provided total is Rs.472000/-in the accounts, but my Income tax settled at Rs.744000/- at the filing date pls explain me how should I deal with this Difference Rs.272000/-? should I need to adjust in the accounts ie creating provision again? or leave it off

I filed off the return ie provision for tax in p&l is Rs.472000/- and in the computation it is Rs.744000/- pls suggest me? whether should I need to revise my IT return for the difference provision (I mean creating additional provision which also reduces profit available for appropriation portion as well) pls suggest me clearly. thanking you all

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4 Replies

Bhavesh Jain (Student) (208 Points)
Replied 04 October 2011

Debit Profit & loss a/c and credit Short excess provsion.

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Harshal Fifadra (Chartered Accountant) (1489 Points)
Replied 04 October 2011

Your tax liability = 7,44,000 (1)

Provision created = 4,72,000 (2)

Income Tax payable = 2,72,000 (1-2)

Income tax payable will shown as a liability . Advance tax paid if any is to be deducted from this Income tax payablee amount .

Ateeq (CA - Final) (218 Points)
Replied 08 October 2011

Originally posted by : Harshal
	Your tax liability = 7,44,000 (1) Provision created = 4,72,000 (2) Income Tax payable = 2,72,000 (1-2) Income tax payable will shown as a liability . Advance tax paid if any is to be deducted from this Income tax payable amount .