Section 516
Section 516: rounding off amounts under the Act
Section 516 is a simple computational rule: any amount of total income computed under the Act, and any amount payable or refundable under it, must be rounded off to the nearest multiple of ₹10.
This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.
How the rounding works
The amount of total income computed, or any amount payable or refundable under the Act, is rounded off to the nearest multiple of ₹10, ignoring any paise. Where the amount is not already a multiple of ten:
- it is increased to the next higher multiple of ten, if the last figure in the amount is five or more; or
- it is reduced to the next lower multiple of ten, if the last figure is less than five.
Effect of rounding
The amount so rounded off is deemed to be the total income of the assessee, or the amount payable or refundable, as the case may be, under the Act.
Frequently asked questions
How is total income rounded off under Section 516?
To the nearest multiple of ₹10 - rounded up if the last digit is 5 or more, and rounded down if it is less than 5, with paise ignored entirely.
Does rounding off apply to refunds too?
Yes - Section 516 applies to total income and to any amount payable or refundable under the Act.
Want this applied to your actual filing, not just explained?
Talk to our tax team about this sectionLast updated 9 September 2026