Hi,
I have paid penalty under tax on regular assessment (400) for AY 13-14 .Please advice under which head I need to take the accounting entry.
thanks
savita
KAPIL JAIN
(Job full time as well as part time)
(232 Points)
Replied 30 November 2016
Dear Savita,
any Penalty under income tax law firstly transffer to profit & loss account for accounting purpose, but at the time computing income as per IT act,such penalty will be disallowed.
Niraj Kumar Sinha
(Sr. Officer, SPSIL)
(648 Points)
Replied 30 November 2016
Entry will be:
Penaly A/C Dr.
To Bank/Cash A/c.
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