What is Rounding off of income? What is Rounding off amount payable and refund due? Section 288A and 288B of Income Tax Act 1961

Rounding off of income and Rounding off amount payable and refund due are defined under section 288A and 288B of Income Tax Act 1961. Provisions under these Sections are:

Section 288A of Income Tax Act "Rounding off of income Rounding off amount payable and refund due"

Section 288A. 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 of Income Tax Act "Rounding off amount payable and refund due"

Section 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.

Home     About Us     Privacy Policy     Disclaimer     Sitemap