Section 288B

Rounding off of tax

Manner of rounding off - Rounding off is to be done in relation to total amount of the tax finally payable or refundable, and not in relation to the amounts under the various minor heads, viz., income-tax, surcharge, etc.Letter : F. No. 12/40/66-IT(B), dated 25-1-1967.

The rounding off process is applied when the tax is finally calculated and this is done at the time of deduction of tax at source by the person responsible for making such deduction.Circular: No. 49 [F.No. 12/135/69-ITJ], dated 16-11-1970.