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what is the meaning of provision for taxation
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The Estimated tax is to be deposit for current financial year.
This Income tax is on the basis of Estimation basis because
we can not calculate exact Income tax in the last day of
Financial year. for finalisation of Balance sheet we have to
provide the amount of Income tax . This amount is to be
shonw for provision for Taxation . This is the liablity of
next FY.
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Answer / ravi
some amount of profits kept as a provision for last year
can be used for provision for taxation if loss occurs in the present year and the amount which is kept for provision for taxation must be used for provision for taxation only
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