Prakt Das (SR) (67 Points)
13 July 2012The online tax calculation facility gives the tax in paise. What should I enter in the cell 'Tax payable on total income'. Say for example, if the total tax is 45984.50, should I round it off to the nearest Re. 1 like 45985 or should it round it off to the nearest Rs. 10 after discarding the 50 paise, like 45980, or should I round it off first to Re. 1 and then round it off to the nearest Rs. 10 like, 45990.
Ashish
(CA)
(166 Points)
Replied 13 July 2012
Ref Sec 288A & 288B. They says Income and Tax should be roundoff to nearest multipal of Rs 10.
Riddhi Bhuva
(Article Student CA Final)
(93 Points)
Replied 13 July 2012
Round it off first to nearest Rs. 1 & then Round it off to nearest Rs. 10
Prakt Das
(SR)
(67 Points)
Replied 13 July 2012
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.
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.
So it seems that in my case, a tax of 45984.50 should be rounded off to 45985, while an income of the same amout should be rounded off to 45990.
anil
(sr. supervisor(it))
(26 Points)
Replied 16 July 2012
ITR1 excel utility calculated tax (including cess) is 168946/- . my employer has deduted 168950/- (This is Form 16 Fig.) . Now if i fill the TDS sheet of ITR1 and put 168950/- in 'Total tax deducted column' . It is creating error and not generating XML for the return. When I put 168946/- then XML is generated. It seems rounding -off issue. what can be done as it is neither refund not less deduction... but difference is due to utility program calculation and actual deduction of Rs. 4 more. Pl. suggest....
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