Section 288A requires the total income computed under the Act to be rounded off to the nearest multiple of ten rupees. Any part of a rupee consisting of paise is first ignored. If the amount is then not a multiple of ten, it is increased to the next higher multiple of ten where the last figure is five or more, and reduced to the next lower multiple of ten where the last figure is less than five.
The amount so rounded off is deemed to be the total income of the assessee for the purposes of the Act. The section applies to every assessee.
Operative consequences
Tax is computed on the rounded total income, since the rounded figure is deemed to be the total income.
Paise are ignored before the rounding to ten rupees.
Rounding of the tax, interest or refund figures is a separate step under s. 288B.
Status
Section 288A is operative for assessment year 2026-27. It is not time-limited. The Finance Act, 2026 did not amend this section.
The 1961 Act governs assessment year 2026-27 and earlier; the Income-tax Act, 2025 governs tax year 2026-27 onwards. For this subject the 2025 Act provision is s. 516, which merges sections 288A and 288B.
Function in the statutory architecture
Section 288A requires the total income computed under the Act to be rounded off to the nearest multiple of ten rupees. Any part of a rupee consisting of paise is first ignored. If the amount is then not a multiple of ten, it is increased to the next higher multiple of ten where the last figure is five or more, and reduced to the next lower multiple of ten where the last figure is less than five.
The amount so rounded off is deemed to be the total income of the assessee for the purposes of the Act. The section applies to every assessee.
Operative consequences
Status
Section 288A is operative for assessment year 2026-27. It is not time-limited. The Finance Act, 2026 did not amend this section.
The 1961 Act governs assessment year 2026-27 and earlier; the Income-tax Act, 2025 governs tax year 2026-27 onwards. For this subject the 2025 Act provision is s. 516, which merges sections 288A and 288B.