Any one teach Tax 2 me

[smraza]

for provision

Debit Income Tax expense
Credit Provision for taxation


for Advance income tax
Payment
Debit Advance income tax
Credit Cash / Bank

deducted by parties
Debit Advance income tax
Creditparty account

ADJUSTMENT AFTER FINALIZATION OF ASSESSMENT

compare the net liability / asset as per books and as per assessment order.

e.g. company has tax asset(advance tax) of Rs.1000/- and provision (liability) of Rs.1200/-

and the ITO accepts the asset of Rs.900 (reject Rs.100 being unsupported) and determines the liability of Rs.1300/-, so as per books net liability is Rs.200/- and as per assessment order net liability is Rs.400/-, now we have to make the payment of Rs.400/- to Income tax department, then following entry is to be passed

Debit Provision for taxation Rs.1,200/-
Debit Income Tax Expense(Prior Years) Rs. 200/-
Credit Advance Income Tax Rs.1,000/-
Credit Bank / Cash Rs. 400/-

I think this will help u in understanding the accounting entries of income tax.

SMR