How to approximate figures while calculating income tax?

For calculating self-assessment tax I have to do some tax calculations myself. I have seen people making approximation in such calculations in different ways. Some people approximate to round figures at the end of each major step and some people do the approximation at the end of all calculations. Which method is correct? While calculating HRA exemption I even get decimal parts for some months. Should I round off to nearest rupee and then add HRA exemptions for all months or should I add all such figures with decimal places and finally round off to nearest rupee? Which method is correct? It will be helpful if you refer me to some sample examples which explain these issues. Thanks.
Replies (1)
This is not at all so complicated. There are only two places where the Income Tax Act permits rounding off- Firstly Rounding off of Total Income to the nearest multiple of 10 u/s 288A. Secondly, Rounding off of tax payable or refund due to the nearest multiple of 10 u/s 288B. Rounding off of decimal figures to multiple of rupee is not a big issue. You may do so as per your convenience.

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