what is grossing up of intrest
4 Replies
CA Manish K Dhoot
(CA, B. Com, NCFM, CPCM)
(5015 Points)
Replied 12 April 2010
If interest is received after deducting TDS then while calculating gross total income we have to gross up tthat net interest.
it is done as under :-
if net interest received is Rs. 990 nd TDS is deducted @ 10 % then gross up will be done as under
interest*100
90
CA VISHAL RANA,CS,B.Com,AMFI
(Chartered Accountant in Whole Time Practice)
(4354 Points)
Replied 12 April 2010
agree with manish
Varun Jain
(CA, B.com )
(392 Points)
Replied 12 April 2010
grossing up is a concept where interest is given after deducting TDS and we have to grossed up interest income.
For Example
if interest income is given rs. 20000 after TDS then we have to grossed up this interest income
20000/90% = 22,222.22
VINEET
(learner)
(53 Points)
Replied 12 April 2010
grossing up is nothing but get an actual amount of income before deducting of tds from it
it can be calculated as follws
amount after tds*100
100-rate at which tds is deducted
u can apply this formula in case u get net income and u get rate of tds in such a case u find actual amount of income
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