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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 ..... for this purpose where such 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 50.60 5.60 56.20 56.00 51.00 5.00 Rounding off of amount under surcharge has been made to adjust total amount to Rs. 56. 50.60 5.60 56.20 56.00 51.00 5.00 Rounding off of amount under surcharge has been made to adjust total amount 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 issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n certificates in respect of deduction certificates already issued while paying interest on Government securities. This usually happens in the case of banks, who hold the securities on behalf of their customers and who do not disclose this fact while collecting interest. As, in terms of the instructions contained in your above circular, the rounding off of tax deducted 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 c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der would have been Rs. 12 as against Rs. 11 actually deducted. We presume that such discrepacies may be ignored by the Public Debt Offices and that they may issue sub-divided deduction certificates on he basis of tax actually deducted and the amounts in such sub-divided certificates need not be in round figures. We shall be glad to have your concurrence to this proposal. 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 b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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