Query on TDS-Non Salary cases

Dear Friends,

Iam having a doubt on rounding off of  TDS on Non Salary cases.

Is there any CBDT notifications/clarifications or Provisions in Income  tax regarding rounding off of TDS in respect of payments made to Professionals/Contractors?

Why I am asking is that I have received from Income Tax Department a notice for short deduction of TDS on amount which is below one rupee.

Replies (3)

Provisions of TDS are governed by Income Tax Act, 1961 and further Taxation Laws Amendment Act, 2006 modified Sec. 288B of Income Tax Act, which states that

 

 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.”. 

that automatically includes TDS Provisions.

YES GO WITH MR. ARORA

REGARDS

Originally posted by : LOVE ARORA

Provisions of TDS are governed by Income Tax Act, 1961 and further Taxation Laws Amendment Act, 2006 modified Sec. 288B of Income Tax Act, which states that

 

 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.”. 

that automatically includes TDS Provisions.

Quite Right. But we can learn a lot  from that notice to file the tds returns more accurately.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
19 September 2026
CA/Semi-CA/BCom

Pravin Sarvaiya

Mumbai

CA Inter

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details
Company
ARTICLESHIP 15 September 2026
Freelance Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
Featured 21 September 2026
Consultant - Reporting

Finrep Advisors LLP

Mumbai

CA

View Details