Answer / k.kavitha

Provision entry for current Year
Income Tax A/c ----Dr
To Income Tax Payable A/c

Adjustment entry in next Year
Income tax payable---Dr
To bank A/c

Answer / gautam kumar

FOR CURRENT YEAR WHEN PROVISION MADE

(IN P & L APPROCIATION ACCOUNT)

PROFIT & LOSS ACCOUNT DR. .......
TO PROVISION FOR INCOME TAX ACCOUNT ........

FOR NEXT YEAR WHEN PAYMENT MADE.

PROVISION FOR ICOME TAX ACCOUNT DR.
TO BANK ACCOUNT

Answer / anees mt

1.At the time of Creation of provision for income tax in previous year for coming year.


Profit & Loss A/c Dr.
To Provision for Income tax
2.At the time of Actual Income Tax Calculated.


provision for Income tax A/c Dr.
To Income Tax

3.At The time of Payment .

Income Tax A/c Dr.
To Bank

Answer / mohit

Normally following entries for Income Tax puposes:
1. Deposing Advance Tax:
Advance Tax (A.Y. ____) Dr.
To Cash or Bank

2. Provision for Current Year I.Tax:
Income Tax (Expenses) Dr.
To Provision for Tax (A.Y. _____)

3. When assessment completed and refund received:
Provision for Tax (A.Y. _____) Dr.
Bank Dr.
To Advance Tax (A.Y. ____)
4. When assessment completed and some demand raised:
Provision for Tax (A.Y. _____) Dr.
To Advance Tax (A.Y. ____)
To Income Tax Additional Demand (Expenses)
Source(s):
Self

Answer / praveen.kp

1 current year
Income tax a/c dr
to provision for taxation a/c

2.next year(adjustment entry)

a)Provision for taxation a/c dr
to income tax payable a/c

b)Income tax Payable a/c Dr
to Cash a/c


Mainly there are 3 entries one is for creating provision,
and the second one is reversal of the same in next year or
month after calculating actual tax payable, and the last one
is for payment of tax to the Government authorities

Answer / sankeerthana

Kavitha pl observe my answer. According to you the amount
of Income Tax is confirmed but not paid. But according to
the question some amount was provided in the shape of
provision. It is not exact figure.it may be raised or
lowered.
sankeerthana
www.therealaccountants.com

Answer / aj

At the time of providing provision for tax the entry is(current year)
dr-tax a/c
cr-provision for tax a/c
at the time of payment (next year)
dr--provision for tax ac
cr-bank a/c

Answer / manish

Can we make entry like this in case of additional demand raised:

Additional income tax demand (ass yr)dr
To. Bank/cash cr

Answer / muhammad

For current year when provision made

(In p

Answer / sreeram

Hi Sankeerthana,

Here the provision you have created in the earlier year you
should reverse with corresponding payment.

By end of Sep 30 you know exact amount of Tax you need to
pay simply pass one more JV.

Dear Sir I had already export to dubai. now I am to know that can I enter this sale entry in RG1. pls guide me.

0 Answers  

dear i want basic a\C's oriented question. these are asking in mostly all mnc companies

0 Answers  

difference between banker's cheque and cheque

1 Answers  

Tell me in accounting, how do you define premises?

0 Answers  

For example for formation of a new company/offshore company you need to show paid up capital of 100K but you don't have 100K you as a director borrow loan of 100K from 3rd party and deposit in the bank as paid up capital and issued shares of 100K in director name. After one week you return back 3rd part loan. What are the entries in the books?

0 Answers  

define depreciation?

8 Answers  

A company purchase goods Rs.2000/- & input vat received rs.100/- but at the time he sold goods 1000/- as a sales & 1000/- as a sock transfer. plz tell me how much take input claim in this case.

0 Answers   Jaguar,

What is the written of minimum cheque value?

1 Answers  

What is deferred account?

0 Answers  

How use Budget in SAP, i want to see the report of variant between budget and actuals.

0 Answers  

what is the difference between debit card and credit card?

2 Answers  

What will be a entry for TDS deducted on Salaries, Directors Remuneration and Rent.

1 Answers