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TDS Receivable Entry if not made Provision

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TDS Receivable in my books of Rs 55000/- of F.Y. 2022-23

Income tax was made of Rs. 46000/- in F.Y. 2022-23

and I have received refund of Rs 9500/- in the f.y. 2023-24. but we did not make provision of Income tax in the f.y. 2022-23 . so suggest how to do this refund entry ..
I made entry below in F.Y. 2023-24. is correct or not ?

Bank A/c Dr 9500/-
Interest from Income tax Cr 500/-
TDS Receivable CR 9000/-

Income Tax Exp Dr 46000/-
TDS Receivable CR 46000/-

Kindly suggest.. is it correct
Replies (4)

https://www.hostbooks.com/in/blog/tds/tds-entry-in-tally/#:~:text=TDS%20Receivable%20Entry&text=This%20entry%20is%20passed%20when,during%20TDS%20deposit%20or%20refund.

Income tax  provision is required  but any way ,  In the F.Y 23-24 you pass entry as follows.

Income Tax  Exp (22-23) A/c Dr 46000
Income tax refund A/c Dr  9000
To TDS receivable A/c Cr 55000
( Refund after Income tax adjusted )


Refund with interest receipt entry

Bank A/c Dr 9500
To Income tax refund A/c Cr 9000
To Interest on IT refund A/c Cr 500
( Income tax refund with interest)

Thank You sir for Your prompt response.. but I have a question that How will be close Income tax Payable account in the end of the financial year

Income tax payable is not actually payable ( I had made necessary corrections in the first entry )  , You Can use A/c Income Tax Expenses A/c ( 22-23) same is adjusted against TDS receivable , which was carried forward from last year and balance is your refund  . you Can show Income tax expense( F.Y 22-23 ) under Indirect expenses in P&L of F.Y 23-24 . 


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