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Experienced Member

What account do i enter income tax payments under

i have paid provisional tax for my company . how do i set up the correct account in the chart of accounts

3 Comments
Established Community Backer *

Hi, Debbie Create an expense type account called Income T...

Hi, Debbie

Create an expense type account called Income Tax from the Chart of accounts.                                                                

Account Type - Expense,   *Detail Type - Tax Paid, *Name - Income Tax.

Comment back for further clarifications.


Experienced Member

Is this correct as it shouldn't go in the profit and loss...

Is this correct as it shouldn't go in the profit and loss as an expense?
Established Community Backer *

Hi, Jan Tax payment is not a Taxable expenditure your tax...

Hi, Jan Tax payment is not a Taxable expenditure your tax preparers know this but for the accounting, purpose treat it as the expenses if taxes are paid / if taxes are only estimated then treat it as the liability by creating a bill for the Tax department.

Comment back for further clarifications.