21 May 2009
Section 288B. Rounding off of tax, etc.
The amount of tax (including tax deductible at source or payable in advance), interest, penalty, fine or any other sum payable, and the amount of refund due, under the provisions of this Act shall be rounded off to the nearest rupee and, for this purpose, where such amount contains a part of a rupee consisting of paise then, if such part is fifty paise or more, it shall be increased to one rupee and if such part is less than fifty paise, it shall be ignored.
21 May 2009
Refer section 195A- Under any agreement or arrangement if the tax payable is to be borne by the payee then for the purpose of deducting TDS Tax on the income should be added. Means the TDS should also be deducted on Income Tax borne by the payee. That is tax on tax. It is applicable on all types of payments except tax on perquisites under section 195(1A)
Find below the text of Section 195A
51[Income payable net of tax.52
195A. 53[In a case other than that referred to in sub-section (1A) of section 192, where under an agreement] or other arrangement, the tax chargeable on any income referred to in the foregoing provisions of this Chapter is to be borne by the person by whom the income is payable, then, for the purposes of deduction of tax under those provisions such income shall be increased to such amount as would, after deduction of tax thereon at the rates in force for the financial year in which such income is payable, be equal to the net amount payable under such agreement or arrangement.]
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