Become a Govt. Certified GST Practitioner in just 60 hrs. Register Now!

Tax refund entry

Jiya Aggarwal (Intern) (53 Points)

22 July 2016

Hi friends,

Could please explain me the entry and treatment in books of Tax refund shown in the prior year ITR form.Should i credit it into P&L or show as a receivable only?Im confused.

Reply
Follow
Share

9 Replies

pavazh (Cost Accountant) (68 Points)
Replied 22 July 2016

Tax Refund from Income tax department should maintain as Advance Tax Paid account in your balance sheet .

Simple JV

Bank A/c Dr

Income tax advance A/c Cr

Upgrade to CAclubindia Pro. Subscribe Now!

Jiya Aggarwal (Intern) (53 Points)
Replied 22 July 2016

I meant what if tax refund is not yet recieved.what would be the journal entry in that case??

CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 22 July 2016

If not yet received, it should be

Income tax refund receivabe_Dr

To TDS/Adv Tax paid

VIKRAMADITYA SINGH (Student CMA) (47 Points)
Replied 22 July 2016

IT receivable DR

TO ADVANCE TAX

1 Like

Jiya Aggarwal (Intern) (53 Points)
Replied 23 July 2016

Ok thanks:-)

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

ritesh sharna (student) (67 Points)
Replied 23 July 2016

How to maintain tds receivable account and where to shown it because somebody show it under capital account and some shown it under assets plz provide complete entry .

Tds receivable ,tax paid & tax refund and proper disclosure

ritesh sharna (student) (67 Points)
Replied 23 July 2016

How to maintain tds receivable account and where to shown it because somebody show it under capital account and some shown it under assets plz provide complete entry .

Tds receivable ,tax paid & tax refund and proper disclosure

CA Lokesh Jalan (CA) (276 Points)
Replied 23 July 2016

Bank Account Dr.

To Advance Tax/TDS
To Interest on I.T. Refund

Rahul Shah (Assistant Chartered Accountant) (196 Points)
Replied 27 July 2016

Hi all

Interest on Income tax refund is to be shown under Profit & loss account & For TDS Receivable amount should be Reduced from particular Year TDS Receivable & accordingly Provision for tax for the particular Year will be reduced or will be debited