EAP:Voucher Gross Amount is Not Rounded Off Before TDS Calculation as Per Sec 288A of India Income Tax Act 1961 (Doc ID 2087025.1)

Last updated on MARCH 18, 2016

Applies to:

PeopleSoft Enterprise FIN Payables - Version 9 and later
Information in this document applies to any platform.

Goal

Voucher Gross Amount is not rounded off before TDS calculation as per Sec 288A of India Income Tax Act 1961.

Actual TDS Calculation:

• Gross Amount of Voucher: Rs. 310247.5
• As the amount exceeds Rs. 30000 in a Financial Year, TDS shall be calculated @ 10%.
• TDS = Rs. 310247.5 X 10% = Rs. 31024.75
• Round Off Option Selected on Withholding Entity Setup: TDS
• Rounded Off TDS = Rs. 31020

Expected TDS Calculation:

• Gross Amount of Voucher: Rs. 310247.5
• Rounded Off Income as per Section 288A of Income Tax Act, 1961: Rs.310250
• As the amount exceeds Rs. 30000 in a Financial Year, TDS shall be calculated @ 10%.
• TDS = Rs. 310250 X 10% = Rs. 31025
• Round Off Option Selected on Withholding Entity Setup: TDS
• Rounded Off TDS = Rs. 31030


 

Solution

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