Greeting Members,
Please tell the treatment of income tax ( advance tax, provisions ) while preparing the books of accounts(b/s,p/s). Please suggest me the accounting entries for that one also.
thanks in advance
neha
5 Replies
CA. Kirti S. Ganatra
(Service)
(1461 Points)
Replied 13 February 2008
When you pay Advance Tax Dr. Adv I.T. A.Y. 2008-09 and Cr. Bank. (Same entry for every installment in this year). If TDS deducted then transfer that recoverable to in same account. on 31.03.2008. Calculate Tax on year End Pay Self Asst if any by Dr. I.T. A.Y. 2008-09. then Say total Tax is 1 Lakh. Make entry on 31.03.2008 Dr. Income Tax A/c. (P&L Appropriation) Cr. Provision for Income Tax A.Y. 2008-09. Nullify this Adv I.T. A.Y. 2008-09 and Provison for A.Y. 2008-09 by reverse entry when your asst will be completed or order U/s. 143 received
Srinivas Sharma KN
(Tax Consultant)
(292 Points)
Replied 13 February 2008
CA Kirti is correct and you also refer AS-22 Accounting for taxes on income.
CA Nikesh J Gandhi
(Practise)
(39 Points)
Replied 15 February 2008
answer given by CA Kirti is correct and you also all Accounting standards for taxes on income.
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