12-06-2010, 07:51 PM
Add followings
1. Current year's provision for "current" tax from profit and loss account (expense)
2. Opening balance of provision for current tax from balance sheet (liability)
3. Closing balance of advance income tax from balance sheet (asset)
4. Closing balance of income tax refundable from balance sheet (asset), if it is also given
From this total deduct the following
1. Closing balance of provision for current tax from balance sheet (liability)
2. Opening balance of advance income tax from balance sheet (asset)
3. Opening balance of income tax refundable from balance sheet (asset), if it is also given
The resultant net figure is cash outflow on account of Income Tax to be taken to cash flow statement.
Regards,
1. Current year's provision for "current" tax from profit and loss account (expense)
2. Opening balance of provision for current tax from balance sheet (liability)
3. Closing balance of advance income tax from balance sheet (asset)
4. Closing balance of income tax refundable from balance sheet (asset), if it is also given
From this total deduct the following
1. Closing balance of provision for current tax from balance sheet (liability)
2. Opening balance of advance income tax from balance sheet (asset)
3. Opening balance of income tax refundable from balance sheet (asset), if it is also given
The resultant net figure is cash outflow on account of Income Tax to be taken to cash flow statement.
Regards,
