No Longer Rounding Off Refunds as Usual for this FY! CA points out Income Tax Portal Glitch
System Glitch: Tax Refunds Not Rounded Off as Required, Points Out CA Aditi Bhardwaj
A seemingly minor but significant system glitch has come to light in the processing of income Tax Return (ITR) refunds for the Assessment Year 2025-26 (Financial Year 2024-2025).
Chartered Accountant Aditi Bhardwaj has flagged the issue on X (formerly Twitter), that refund amounts are not being rounded off to the nearest multiple of ten rupees, as required under Section 288B of the Income Tax Act, 1961. Instead, taxpayers are receiving non-rounded amounts, a situation that could have wider implications if left unaddressed.
https://x.com/CAAditiBhardwaj/status/1956700783711506574
On August 16, Bhardwaj posted: “As per Section 288B of the Income-tax Act, 1961, the amount of refund should be rounded off to the nearest multiple of ten rupees. However, it is observed that for ITR refunds of AY 2025-26, the final refund is not rounded off. For example, ₹35,807 is not rounded to ₹35,810. This appears to be happening across all cases. Request to clarify @IncomeTaxIndia. Example acknowledgment attached.”
The attached acknowledgment slip, included in her post, demonstrates the anomaly: refunds such as ₹35,807 are issued without rounding, contrary to statutory requirements.
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The understanding is correct that while filing the tax returns for AY 2025-26, the final refund is not getting rounded off. However, given the negligible quantum involved, the impact on taxpayers is minimal.
As per data available here, 31,081 Crore Rupees have been issued as refund to Non-Corporate as on 11 August 2025 and the non-rounding off of Tax refunds are against the provisions laid down in Section 288B of the Income Tax Act, 1961.
Experts note that there is currently no adverse consequence for taxpayers themselves, nor is corrective action required on their part. This situation does not amount to an error by taxpayers and the obligation lies with the Department’s processing system. Variation here is a matter of procedural implementation, not tax compliance.
However, if left unresolved, experts warn it could lead to non-compliance at the departmental level, public grievances, administrative complications, and even potential litigation, disproportionately affecting the efficiency and reputation of the tax administration. The Income Tax Department is expected to issue a clarification and rectify the apparent glitch in the near future.
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