Know what is rounding off in Income Tax u/s 288A & 288B, with Automated One by One Prepare Form 16 Part A and B and Part B for F.Y.2016-17

Insertion of new sections 288A and 288B

34. After section 288 of the Income-tax Act, the following sections shall be inserted, namely:—

Rounding off of income

‘288A, (1) Subject to the provisions of sub-section (2), 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.

(2) If the total income of the assessee includes earned income chargeable under any head, the adjustment under subsection (1) shall, to the extent possible, be made in computing such earned income and, as to the balance, if any, against any other income; and if there is no earned income, the adjustment shall be made in computing any other income under any head.

Explanation.—In this section, the expression “earned income” has the meaning assigned to it in the Finance Act of the relevant year.

Rounding off of tax etc.

288B. 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 paisa, then, if such part is fifty paisa or more, it shall be increased to one rupee and if such part is less than fifty paisa, it shall be ignored.’

Download One by One Prepare Income Tax Form 16 Part A&B and Part B for Financial Year 2016-17 & Assessment Year 2017-18 [ This Excel Utility can prepare One by One Form 16 Part A&B and Part B for F.Y.2016-17]

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