Accounting entry for TDS not deducted but deposited by Bank

[Ramesh Rangani]

Hi Experts!

Please advise which will be the proper account to be credited in following case.

There was FD with Govt bank. By mistake they deducted short TDS on interest accrued during the year and auto renewed FD with interest (net of tds). After 31-Mar-2017, this was brought to their notice. They accepted the mistake and deposited tds (with applicable interest) in the month of Apr-2017. To book TDS receivable on 31-Mar-2017, needs to pass the entry. In this case, please advise which account should be credited. (I doubt if we credit the amount to Bank account, it may be treated as loan).

Thanking you in anticipation,

Ramesh

[Ravi Kumar]

you need not to pass any JV in your book , only bank will do the effect.

in case of short booking re book this

AI Summary

Government Bank Corrects TDS Deduction Error on FD; No Journal Voucher Needed for User's Books, Says Expert A user inquired about the appropriate accounting entry for a situation where a government bank mistakenly deducted less TDS on interest from a fixed deposit, auto-renewed the FD with net interest, and later corrected the mistake by depositing the TDS with interest. The user sought advice on which account to credit to avoid it being treated as a loan. A respondent advised that no journal voucher is needed in the user's books, as the bank will handle the correction, suggesting that rebooking might be necessary in case of short booking.