New Receipt - Tax settings not working whatsoever

I have created Tax codes as per Indian laws. I have created a capital account for the tax payable. The tax codes are linked to this account. Now I am trying to record a receipt. I select the appropriate tax code but it simply doesn’t work. Check image

It doesn’t matter if I select tax inclusive or tax inclusive.

Can you show edit screen of the tax code you have created?

Your tax liability account should not be a capital account. It should be a Liabilities account. See the Guides:
https://www.manager.io/guides/10388
https://www.manager.io/guides/8901

Thank you for responding. It is a liabilities account only. I casually refer to accounts on the liabilities side of the balance sheet as a capital account. Sorry for the confusion. My mistake.

Will share it tomorrow from office. Regards!