Hello Kurian,
As per section 288A of the Income Tax Act, the total income computed as per various sections of this act, shall be rounded off to the nearest Rs 10. For the purpose of rounding off, firstly any part of rupee consisting of paise should be ignored. Thereafter, if the last digit in the total figure is 5 or greater than 5 the total amount should be increased to the next higher amount which is a multiple of Rs 10.
If the last digit in the total figure is less than 5, the total amount should be reduced to the nearest lower amount which is a multiple of Rs 10. This rounding off of income should be done only to the total income and not at the time of computation of income under the various heads.
Eg: If total income is Rs 638944.50 In such a case, firstly the paise would be ignored and total income would be considered as 638944. Thereafter, this 638944 would be reduced/ increased to the nearest multiple of 10. As the last digit is 4 which is less than 5, it would be reduced to the nearest multiple of 10 which in this case would be 638940.
Instead of Rs 638944.50, if this income had been 638945.50, it would have first been rounded off to Rs 638945 and then rounded off to 638950.
I hope this will help you.
