Provision for income taxesProvision for income taxes refers to the estimated amount of income tax expense that a company expects to pay for a specific reporting period. It is recorded as an expense on the company's income statement and as a liability on its balance sheet.
The provision for income taxes takes into account the company's taxable income or loss for the period, as well as applicable tax rates and tax regulations. It is based on the company's best estimate of its tax liability, considering factors such as tax deductions, credits, and any tax planning strategies employed.
The provision for income taxes is important for financial reporting purposes as it reflects the company's anticipated tax expense and helps provide a more accurate representation of its financial performance. It ensures that the company recognizes and accounts for its tax obligations in the same period as the related revenues and expenses.
It's worth noting that the provision for income taxes may not always align exactly with the actual taxes paid to the tax authorities. This can occur due to timing differences between when revenues and expenses are recognized for financial reporting purposes and when they are recognized for tax purposes, as well as potential changes in tax laws or tax assessments. Any differences between the provision and the actual taxes paid are typically adjusted for in subsequent periods.+
Wimax Company limited
Provision for income Taxes
Year-2022 Year-2021
Opening balance xxxx xxxx
Add: current Tax during the year xxxx xxxx
Add: short provision for income Tax (xxxx) (xxxx)
Adjustment of Tax provision for the (AY 2020-2021 ) (xxxx ) (xxxx)
Total Provision for income taxes xxxx xxxx