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TMI BlogProcedure to be followed in cases where separate amounts of tax payable or refundable under various minor heads include fractions of a rupeeX X X X Extracts X X X X X X X X Extracts X X X X ..... h amount contains a part of a rupee consisting of paise, then if such part is 50 paise or more, it is to be increased to one rupee and if such part is less than 50 paise, it is to be ignored. The scope and applicability of this section has already been explained in para 56 of Boards Circular No. 4-P, dated 21-7-1966. 2. Clarification has been sought regarding the procedure to be followed in cases where the separate amounts of tax payable or refundable under the various minor heads, e.g., income-tax, surcharge, etc., include fractions of a rupee. The Boards views in this matter are set forth in the following paragraphs. 3. Under the provisions of the Act, the rounding off is to be done in relation to total amount of tax finally payable or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Rs. 56. 50.40 5.30 55.70 56.00 51.00 5.00 Rounding off of amount under income-tax has been made to arrive at the total demand of Rs. 56. 5. Tax payable/refund due will be shown in the assessment from before rounding off under the various heads, but the same will be shown in the Demand and Collection Register after rounding off, as illustrated above. The demand notice or refund order will be issued for the total tax payable/refundable as rounded off. Letter: F. No. 12/40/66-IT(B), dated 25-1-1967. CLARIFICATION 2 1. Attention is invited to the Boards Circular No. 4-P(LXXVI-61) of 1966, dated 21-7-1966 and Letter F. No. 12/40/66-IT(B), dated 25-1-1967 [Clarification 1] wherein instructions have been issued on the provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed from interest on Government securities is to be done in relation to the total tax deductible and the amounts under the minor heads, viz., income-tax, surcharge, etc., are to be rounded off in such a manner that their aggregate agrees with the total rounded off figure, once the tax is deducted and income-tax deduction certificate is issued, the issue of sub-divided deduction certificate, if requested by a bank or other holders of Government securities, present certain difficulties. To cite an example, half-yearly interest on securities of 4 per cent Loan 1970 amounting to Rs. 2,000 is Rs. 40 and income-tax and surcharge chargeable thereon is Rs. 9 [Income-tax Rs. 7.20 + Surcharge Rs. 1.60 = Rs. 8.80, i.e., Rs. 9 (Rs. 7 + Rs. 2) after rou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sal. 3. In the example cited above, where the income-tax is shown as Rs. 3.60 and surcharge Re. 0.80 both the broken amount exceed 50 paise and we have ignored the broken amount under income-tax and rounded off the surcharge to the next higher rupee. There may also be cases where the broken amount of surcharge is less than the broken amount of income-tax, and still it may be necessary to ignore the broken amount the income-tax and rounded off the surcharge to next higher rupee, as shown below : Amount of interest: Rs. 13 Income-tax Rs. 2.70 Surcharge Re. 0.60 Total Rs. 3.30 After rounding off Rs. 3.00 Income-tax Rs. 2.00 Surcharge Re. 1.00 Further, where the total tax after rounding off amounts to Re. 1.00 only, surcharge nee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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