Income Tax paid of AY 2016 -17 against demand notice along with interest.
What will be accounting entry in present year
adjust it against provision created in year AY 16-17 and debit the interest in P&L account.
in case of individual, you have option to route entire amount through capital account
In any other case, route it through P&L account.
also kindly disallow the same from computation of income if it is routed through P&L account
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