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of <h1>Income Tax Bill 2025 Clause 516 consolidates rounding provisions for tax calculations and refunds</h1> The Income Tax Bill 2025's Clause 516 consolidates and expands rounding off provisions for tax calculations. While the existing Section 288A of the Income Tax Act 1961 only covers total income rounding, the new clause encompasses total income, tax payable, and refundable amounts. Both provisions use identical methodology: ignore paise, then round to nearest multiple of ten rupees (up if last digit is 5 or more, down if less than 5). The rounded amount becomes the deemed legal figure. Clause 516 effectively merges the functions of current Sections 288A and 288B into a single provision, enhancing administrative efficiency and reducing interpretational disputes. This consolidation simplifies compliance for taxpayers, streamlines tax administration processes, and facilitates automated computation systems while maintaining the established mathematical rounding principles that have governed tax calculations since 1966.
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