Vaibhav Jandey (Life iz Hard; I'm Harder) (1175 Points)
24 August 2012Dear Friends,
Today I just stuck up thinking how the entries for Income tax payment are passed in Companies, Partnership Firms etc.
I would like to know the whole solution to this Income tax entry i.e. all the aspects eg TDS, Advance tax and Provision for Income Tax.
Have different angles towards it.
Please share your knowledge whatever you feel right in your views.
Nitesh Matta
(Nothing)
(198 Points)
Replied 24 August 2012
Sravanthi
(CA Final ICWA Final & M.B.A)
(737 Points)
Replied 24 August 2012
For Advance Tax:
Advance Tax a/c Dr
to Bank a/c
Advance Tax - Asset
For TDS:
TDS a/c Dr
to party a/c
TDS Asset
Sravanthi
(CA Final ICWA Final & M.B.A)
(737 Points)
Replied 24 August 2012
for Tax Provision
P & L a/c Dr
to Provision for Tax a/c
Provision for Tax is a Current Liability & Provisions
for Payment of Tax:
Provision for Tax a/c Dr
to Bank a/c
Sravanthi
(CA Final ICWA Final & M.B.A)
(737 Points)
Replied 24 August 2012
for Finalisaion
1,Tax a/c Dr
to Advance Tax a/c
to TDS a/c
Tax is to booked as an Expenditure
2, P & L a/c Dr
to Tax a/c
Finally Advance Tax & TDs to be Nil. for Checking Purpose
Vineet
(Assistant Manager)
(140 Points)
Replied 24 August 2012
if there is a difference between provision and actual tax paid in that case reversal entry is require(if provision exceed tax)..and if tax part exceed provision in that case nothing needs to be done..please correct if I am wrong..as I am not very sure about it..
R M SHAH
(CA)
(43 Points)
Replied 25 August 2012
Entries shown by Sravanthi are absolutely correct and Vinnet in case where tax exceeds provision entry for short fall of tax of P.Y. is required to be pass in succedding year.
Bhaskar Unnikrishnan CPA CMA
(Accounts / Administration)
(414 Points)
Replied 26 August 2012
Rajesh
(CA Final Student)
(52 Points)
Replied 27 August 2012
Hi,Vineet
If Tax provision exceeds to Tax paid(Adv tax, TDS) you need to pay in that year by Debiting Tax A/c Crediting Bank/Cash A/c.
If Tax provision is less than Tax paid(Adv.tax,TDS) you have to claim for refund.
Vaibhav Jandey
(Life iz Hard; I'm Harder)
(1175 Points)
Replied 27 August 2012
| Originally posted by : Sravanthi | ||
 |
For Advance Tax: Advance Tax a/c Dr to Bank a/c Advance Tax - Asset For TDS: TDS a/c Dr to party a/c TDS Asset |
 |
thank you my friend for replying,
Like the above explanation could you please tell me the cases where i t provision exceeds tax paid and vice versa. What are the adj that needs to be carried out. Please show entry wise if possible; would be great if you can cite the principles applied.
AASAN HAI
(STUDENT)
(76 Points)
Replied 28 August 2012
WAT WOULD BE D ENTRY IF PROVISON FOR TAX SHORTFALLS IN COMPARISON 2 ACTUAL TAX PAID
Ram Chandra
(Finance Officer)
(29 Points)
Replied 30 August 2012
When Individual, firm and company pay advance tax
Advance Tax A/c Dr. *****
To Bank A/c Cr. *****
When TDS deducted by other parties
Advance Tax (TDS) A/c Dr. ****
To Party Name (Who deducted TDS) Cr. *****
When Tax deposite under section 140(a) as self assessment
Income Tax (for respective assessment year) A/c Dr. *******
To Bank (if there is any payable) A/c Cr. *****
To Advance Tax A/c Cr. *****
these are sufficent enties if we want some thing special than we make some more entry for due to respective entry
CAclubindia
