Section 288B requires any amount payable, and any amount of refund due, under the Act to be rounded off to the nearest multiple of ten rupees. Any part of a rupee consisting of paise is 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 section applies to amounts payable by any assessee or other person, such as tax, interest and penalty, and to refunds due from the Government.
Operative consequences
Demands and refunds are expressed in multiples of ten rupees.
The same rounding method applies in both directions, to sums payable and to refunds.
Rounding of total income is governed separately by s. 288A.
Status
Section 288B 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 288B requires any amount payable, and any amount of refund due, under the Act to be rounded off to the nearest multiple of ten rupees. Any part of a rupee consisting of paise is 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 section applies to amounts payable by any assessee or other person, such as tax, interest and penalty, and to refunds due from the Government.
Operative consequences
Status
Section 288B 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.