Section 288A of the Income-tax Act: Rounding Off Total Income
Section 288A of the Income-tax Act, 1961 requires computed total income to be rounded to the nearest multiple of Rs. 10. Paise are discarded first; the last whole-rupee digit then determines whether the amount is rounded up or down.
What does Section 288A provide?
The expression total income refers to income determined under the applicable provisions of the Act after making the prescribed computations and permissible adjustments. Section 288A is applied to that computed total income, rather than to each individual receipt or income component.
- Ignore paise: disregard the fractional part of a rupee, without rounding that fraction upward.
- Examine the units digit: if it is 0 to 4, reduce the amount to the lower multiple of ten.
- Round upward at 5: if the units digit is 5 to 9, increase the amount to the next multiple of ten.
- Use the rounded amount: the resulting amount is treated as the assessee's total income for the purposes of the relevant Act.
For example, Rs. 4,56,784.99 becomes Rs. 4,56,784 after ignoring paise, and then Rs. 4,56,780. In contrast, Rs. 4,56,785 becomes Rs. 4,56,790.
Section 288A rounding examples
| Computed total income | After ignoring paise | Rounded total income | Reason |
|---|---|---|---|
| Rs. 2,52,844.99 | Rs. 2,52,844 | Rs. 2,52,840 | Units digit 4: round down |
| Rs. 2,52,845.00 | Rs. 2,52,845 | Rs. 2,52,850 | Units digit 5: round up |
| Rs. 6,75,999.99 | Rs. 6,75,999 | Rs. 6,76,000 | Units digit 9: round up |
| Rs. 8,40,000.75 | Rs. 8,40,000 | Rs. 8,40,000 | Already a multiple of ten |
| Rs. 9,99,994.99 | Rs. 9,99,994 | Rs. 9,99,990 | Units digit 4: round down |
Calculation method
For a non-negative income amount, disregard the paise, then round the remaining integer to the nearest ten using the statutory 5-up rule. Do not round the paise to the nearest rupee before this step.
Difference between Sections 288A and 288B
Section 288A concerns rounding the total income figure. Section 288B concerns rounding amounts payable and refunds due under the Income-tax Act, 1961. Although both use a nearest-Rs.-10 approach, they apply to different amounts and should not be conflated.
Rounding off under the Income-tax Act, 2025
The Income-tax Act, 2025 introduces Section 516 for rounding off income. Readers dealing with tax years commencing on or after 1 April 2026 should consult the enacted 2025 Act and applicable transitional provisions, rather than assuming every reference to the 1961 Act continues unchanged. The underlying topic remains the rounding of the final income amount for statutory purposes.
Official legislation and tax resources can be accessed through the Income Tax Department and India Code.
Section 288A: statutory text and amendment history
Read the statutory wording of Section 288A (1961 Act)
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.
Legislative history: Section 288A was inserted by the Finance Act, 1966 with effect from 1 April 1966. The Finance Act, 1968 substituted the opening wording and omitted the earlier sub-section (2) and Explanation with effect from 1 April 1969. Those omitted provisions are historical, not operative rounding instructions.
Frequently asked questions
How is total income rounded under Section 288A?
First ignore paise. Then round the whole-rupee amount to the nearest multiple of Rs. 10: a units digit of 0 to 4 rounds down and 5 to 9 rounds up.
Does Rs. 2,52,844.99 round to Rs. 2,52,850?
No. Paise are ignored first, giving Rs. 2,52,844, which rounds down to Rs. 2,52,840.
Is rounding of tax payable governed by Section 288A?
No. Section 288A addresses total income. Section 288B separately governs rounding of amounts payable and refunds under the 1961 Act.
What is the corresponding provision in the Income-tax Act, 2025?
Section 516 deals with rounding off of income under the Income-tax Act, 2025.
Official legal sources
- Income Tax Department - Section 288A (1961 Act)
- Income Tax Department - How to round off total income (FAQ)
- Income Tax Department - legislation and tax guidance
- India Code - official legislation database
Updated: 28 October 2026. This guide explains statutory rounding rules; confirm the applicable enactment and any subsequent changes for the relevant tax year.