Section 288A: Rounding off of Total Income under Income Tax Act, 1961

By | July 23, 2015

As per section 288A, Total amount of taxable income calculated as per various provisions of this act shall be rounded off to nearest Rupees 10 and avoid any fraction thereto. For example if the taxable income is computed to be Rs. 5,99,995/- then it shall be rounded off as Rs. 6,00,000/- and where taxable amount computed is Rs. 5,99,994.50/-, it shall be rounded off as Rs. 5,99,990/-.

This rounding off in Section 288A is applicable on Gross Total Income (GTI).

Reference:

As Per Section 288A, of the Income Tax Act, 1961-

Rounding off of income.

  1.  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.

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