Our Recommendations :-
Follow CA Final FB Page

How to round off the tax liability?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 preetham asked almost 3 years ago

Hi Can I know, How to round off the tax liability?

    0       0 Answer Now Comment Report
3 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Surbhi answered over 2 years ago

As per section 288A​​, total income computed in accordance with the provisions of the Income-tax Law, shall be rounded off to the nearest multiple of ten. Following points should be kept in mind while rounding off the total income: First any part of rupee consisting of any paisa should be ignored. After ignoring paisa, if such amount is not in multiples of ten, and last figure in that amount is five or more, the amount shall be increased to the next higher amount which is in multiple of ten and if the last figure is less than five, the amount shall be reduced to the next lower amount which is in multiple of ten and the amount so rounded off shall be deemed to be the total income of the taxpayer.​

    0       0 Comment Report
Important Note – Preparing for CA Final?
CAKART provides Indias top faculty each subject video classes and lectures – online & in Pen Drive/ DVD – at very cost effective rates. Get video classes from CAKART.in. Quality is much better than local tuition, so results are much better.
Watch Sample Video Now by clicking on the link(s) below – 
For any questions Request A Call Back  
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered over 2 years ago

As per this section, Total amount of taxable income calculated as per various provisions of this act shall be rounded off to nearest Rupees 10 (ten) and avoid any fraction thereto. For example, if taxable amount computed is Rs. 999995/- then it shall be rounded off as Rs.1,00,000/- and where taxable amount computed is Rs.9,99,994.50, it shall be rounded off as Rs.9,99,990/-. Section 288B As per this section final tax liability, calculated on taxable income as per provisions of this act, shall be Rounded off to nearest Rupees 10(ten) and avoid any fraction thereto. Above example is suffice for further explanation

    0       0 Comment Report
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 HIMANSHU answered almost 3 years ago

To avoid difficulty in calculation of Tax amount, act provides provisions of rounding off of Taxable income as well final tax liability. Section 288A As per this section, Total amount of taxable income calculated as per various provisions of this act shall be rounded off to nearest Rupees 10 (ten) and avoid any fraction thereto. For example, if taxable amount computed is Rs. 999995/- then it shall be rounded off as Rs.1,00,000/- and where taxable amount computed is Rs.9,99,994.50, it shall be rounded off as Rs.9,99,990/-. Section 288B As per this section final tax liability, calculated on taxable income as per provisions of this act, shall be Rounded off to nearest Rupees 10(ten) and avoid any fraction thereto. Above example is suffice for further explanation Combine Example of Section 288A and 288B Mr X, has a total income off Rs.1,99,995/- for the A.Y. 2011-12. Compute the final Tax liability for A.Y.2011-12 (Here, A.Y. means assessement year) Ans. Amt(Rs.) Total Taxable Income 199994.00 Taxable income ( Rounded off) 199990.00 S.288A Tax Liability @ 10.30% 4118.97on Rs. 1,99,990/- Tax Liability ( Rounded off) 4120.00 S. 288B

    0       0 Comment Report
Get Notifications
Videos
Books
Notes
Loading
SIGN UP
Watch best faculty demo video classes

These top faculty video lectures will
help u prepare like nothing else can.