ITR Filing Refund Update: Major update for taxpayers. The deadline for submitting income tax returns has come and gone, yet a lot of folks still haven’t seen their refunds. This brings up an important question: will the government pay interest if there are delays in refunds? The answer is yes, but it hinges on when you filed your return and why there’s a delay.
If you submitted your ITR for the financial year 2024-25 by September 16, which is within the deadline, the government will start paying interest on your refund from April 1. This interest will keep accruing until the refund hits your bank account. So, if the processing is delayed on the department’s end, you’re entitled to that interest. But if you filed your ITR after the deadline, the rules shift a bit. In those cases, interest will be calculated from the date you filed your return, not from April 1.
This means that if you file late, you might miss out on some interest. Section 244A of the Income Tax Act states that interest on refunds is a thing. If the government doesn’t issue a refund in the required timeframe, they owe you interest. The interest rate is set at 0.5 percent per month or for any fraction of a month, and it applies to the total refund amount. This interest also covers amounts like TDS, advance tax, or self-assessment tax. However, if the delay is your fault—like if you submitted incorrect info or didn’t provide all the necessary documents—then you won’t get any interest.
On the flip side, if the delay is on the department’s part, you’re guaranteed interest. If your refund is still MIA, start by checking the status on the Income Tax e-filing portal. If needed, reach out to the Central Processing Center or your assessing officer.
Make sure to keep all your payment receipts and any other important documents handy, just in case you need to prove something later. If you filed your ITR correctly and on time, you can count on receiving interest for the delay from the government under Section 244A.