Can anyone plz tell me what are the provisions for rounding off of TDS amount calculated???
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Rounding off of tds
Replies (5)
Quick Summary
Rounding off is done to nearest Rupee.
rounding off to nearest of rupee is done in case of tds.
Dear Sir
Text of section 288B of Income Tax Act is as follows-
"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.]"
As per this section any amount payable also include TDS, so whether TDS should be rounded off to multiple of rupee ten or repuee one?
Plz help!!!!!!!!
@ hitesh.... though section says to round off to multiple of 10, but it is better to round off to nearest rupee because while processing of tds return system does not take care of rounding off and generates demand. so to avoid any prb or notices in future it is better to round off to nearest rupee.
Section is says about total liability payable to Department not about Individual counter party.
As a general practice, we could round off it nearest to Rupee.
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