Difference Of One Rupee in Tax

6766 views 7 replies

sushil girdher

jto

50 Points Joined January 2011

Sir

I need advice of professional on a topic related to income tax

My total tax liability after saving is13051/- as per calculations and this same figure is shown in Form-16 given by employer

But My employer has deducted a TDS of13050/-....that is one rupee less than total tax liability

Now i have to fill return form ITR ....so i have filled all figures like total tax liability13051 TDS deducted 13050

Now Balance to be paid is shown nil in my form 16 and same i am filling in ITR

will this one rupee create any problem?

if yes what can i do?

pls suggest

Thanks

Replies (7)

Abhijeet Deshpande

Co-Founder & Manager @ Tax-Yantra

1171 Points Joined June 2010

As per the TAX law;

"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."

So in your case after deducting TDS as the balance tax liability payable is Re.1, it should be rounded off to nearest multiple of Rs. 10, i.e., 0. So, there is no liability on your part & you can file NIL return.

CA ADITYA SHARMA

CA IN PRACTICE

16719 Points Joined May 2011

no it will not be problem. the tax liability can be rounded off to nearest rupees 10

Same is the case with me...My tax payable on total income is coming as 70736 in Form 16 where as per the e-filing calculator the tax is 70737. So do I've to pay this Rupee 1 as tax? If yes where I can pay this tax - at a bank or it is possible to pay it online as well. Also can I e-file without paying this Rupee 1 as tax. Thanks in advance.