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Microlesson · 5-min read

Rounding Off of Total Income and Tax Payable

## Rounding Off [Sections 288A & 288B]

  • Section 288A — Total Income shall be rounded off to the nearest ₹ 10.
  • Section 288B — Tax Payable shall be rounded off to the nearest ₹ 10.

### Mechanics

If the last digit is less than 5 → round down.

If the last digit is 5 or more → round up.

Worked example

### Example 1

Total Income Rounding (Sec 288A)

  • ₹ 10,80,514 → rounded down to ₹ 10,80,510 (last digit 4 < 5)
  • ₹ 10,80,515 → rounded up to ₹ 10,80,520 (last digit 5)

### Example 2

Tax Payable Rounding (Sec 288B)

  • ₹ 7,186 → rounded up to ₹ 7,190 (last digit 6)

⚠️ Common exam mistakes

  • Rounding off to the nearest rupee instead of nearest ₹10.
  • Applying rounding off at intermediate steps; rounding off is to be done only on the final Total Income and final Tax Payable.
Bare-Act text Sections 288A & 288B · Income Tax Act, 1961 · click to expand
Section 288A: 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. Section 288B: The amount of tax (including tax deductible at source or payable in advance), interest, penalty, fine or any other sum payable, and the amount of refund due, under the provisions of this Act shall be rounded off to the nearest multiple of ten rupees.
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