As per this section final tax liability, calculated on taxable income as per provisions of this act, shall be Rounded off to nearest Rupees 10(ten) and avoid any fraction thereto.
Tax Rounded off is the net tax payable i.e. tax adjusted to all the prepaid taxes, i.e. advance tax or TDS.
Combine Example of Section 288A and 288B
Mr X, has a total income off Rs.1, 99,995/- for the A.Y. 2011-12. Compute the final Tax liability for A.Y.2011-12 (Here, A.Y. means assessment year)
| Particulars | Amt(Rs.) |
| Total Taxable Income | 199994.00 |
| Taxable income (Rounded off) Sec. 288A | 199990.00 |
| Tax Liability @ 10.30% on Rs. 1,99,990/- | 4118.97 |
| Tax Liability (Rounded off) Sec. 288B | 4120.00 |
Reference:
As Per Section 288B, of the Income Tax Act, 1961-
Rounding off amount payable and refund due.
288B. Any amount payable, and the amount of refund due, under the 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.