Accounting treatment of Provision for Income Tax

Current Year

Create Provision for Income tax for the amount of Current Tax along with the Interest amounts u/s 234A,234B,234C

Accounting Entry

1. Provision for Income tax

Current Tax(P&L) Dr

To Provision for Income Tax(Liability)

2. Advance Tax Entry

Advance Tax (Asset) Dr

To Bank account

3. TDS Receivable Entry

TDS Receivable (Asset) Dr

Debtor (Asset) Dr

To Gross Receipts A/c (P&L)

Next Financial Year

1. On Payment of Income Tax

Provision for Income Tax Dr

To Advance Tax

To TDS Receivable.

To Bank (Payment of Tax)

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