How to round off total
income before computing tax
Liability?
Section - 288A, Income-tax
Act, 1961-2017
Rounding off of income.
Section 288A: The amount of total income computed in accordance with the
foregoing provisions of this Act shall be rounded off to the nearest multiple
of ten rupees and for this purpose any part of a rupee consisting of paise
shall be ignored and thereafter if such amount is not a multiple of ten, then,
if the last figure in that amount is five or more, the amount shall be
increased to the next higher amount which is a multiple of ten and if the last
figure is less than five, the amount shall be reduced to the next lower amount
which is a multiple of ten; and the amount so rounded off shall be deemed to be
the total income of the assessee for the purposes of this Act.
Illustration for better understanding
If the taxable income of Mr. Keshav is Rs. 2,52,844.99, then first paisa shall
be ignored, i.e., 0.99 paisa shall be ignored) and the remaining amount of Rs. 2,52,844 shall be rounded off to Rs. 2,52,840 (since last
figure is less than five). If the total income is Rs. 2,52,845 or Rs. 2,52,846.01, then
it shall be rounded off to Rs. 2,52,850 (since the last figure is five or above).
Section - 288B, Income-tax
Act, 1961-2017
Rounding off amount payable
and refund due.
Section 288B. Any amount payable, and the amount of refund due, under the
provisions of this Act shall be rounded off to the nearest multiple of ten
rupees and for this purpose any part of a rupee consisting of paise shall be
ignored and thereafter if such amount is not a multiple of ten, then, if the
last figure in that amount is five or more, the amount shall be increased to
the next higher amount which is a multiple of ten and if the last figure is
less than five, the amount shall be reduced to the next lower amount which is a
multiple of ten.
Illustration for better understanding
If the tax Payable/refundable of Mr. Keshav is Rs.7,534.47, then first paisa shall
be ignored, i.e., 0.47 paisa shall be ignored) and the remaining amount of Rs. 7,534
shall be rounded off to Rs. 7,530 (since last figure is less than five). If the total income is
Rs. 7,535.00 or Rs. 7,535.47, then it shall be rounded off to Rs. 7,540 (since the last
figure is five or above).
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