Round off in Income TAx

Others 9591 views 2 replies

Pratik K

Student

3406 Points Posted on 14 July 2008

As per Income TAx Act,TAxable income should be rounded off to the nearest Rs.10.I am having trouble in following case.

What if the Taxable Income arrives at Rs.10004.85?

Will it be double rounded off like first paisa rounded offin rupees and then Rupees rounded off to nearest Ten Rupees?

I understand that difference in both cases will be minor but it is better to know the answer as per law.

Replies (2)

anil kumar

service

45 Points Posted on 14 July 2008

Dear Pratik,

please go through Section 288A of the IT Act for the query raised which is reproduced below:

Section 288A
ROUNDING OFF OF INCOME.

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.