2016-17-tax provision created Rs.1200000(pvt ltd)
actual liability Rs.1000000
2017-18 tax provision i want to create Rs.1500000
Please suggest me how to account
should i create provision for remaining 1300000 (or)
should i reverse it and create full provision, if so, where i have to show that in profit &loss statement.
Best practice would be to reverse tax of earlier year and create a fresh provision for current year.
However if it is annual income tax on regular assessment, then you must have already paid it!!!
If it is not for regular assessment then create an entry for difference so that in future you will have an idea of provision created for each year.
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