Tax provision is the estimated amount that a taxpayer expects or calculates to pay as the tax for the current year. There are provisions to almost all taxes but, the most discussed tax provisions are income tax provisions. Let’s discuss it now, implying from tax provisions, income tax provision is the estimated amount that a business owning or an individual taxpayer, expects or calculates to pay as the tax for the current year. The amount is derived by adjusting the net income with a variety of permanent and temporary differences only. The provision for income taxes is calculated by multiplying the net income to income tax rate. In order to eliminate tax liability, the provisions can be altered to some extent by tax planning. Based on the tax planning abilities of the taxpayer, the proportional size of the provision can differ from one taxpayer to another and further about it, a planned income tax provision can also be included in the company’s budget model. This planned provision includes both permanent and temporary differences in a well-crafted model and it is based on the applicable tax rate in simpler or more basic model. The provision discussed was income tax provision and the other tax provisions are also more or less similar to them.