If you have filed your Income Tax Return (ITR) and are waiting for a refund, then don’t worry. You may soon get a benefit. Now, the government will pay interest on any delay in the ITR refund. This means the longer the refund is delayed, the more extra money you will receive in your account.

When Will You Get interest?

As per Section 244A of the Income Tax Act, if your tax refund is late, the government will give you 0.5% interest every month. This interest is counted from the day you filed the ITR or from the end of the assessment year. The interest will keep adding until you get your refund.

How Will the Interest Be Counted?

Suppose your refund is ₹10,000 and the government gives it after 6 months. Then you will get:

₹10,000 + ₹300 (0.5% every month for 6 months) = ₹10,300

But you will get this interest only if your refund is more than 10% of your total tax.

When Will You Get the Refund?

  1. If you filed your ITR correctly and e-verified it, the refund will come in 4 to 5 weeks.
  2. If your bank account is pre-validated, the refund can come faster, in 7 to 20 days.

When You Will Not Get Interest

  • If there is a delay because of your mistake (like missing documents), you will not get any interest.
  • If your refund comes on time, then also no interest will be given.

Last Date to File ITR

  • Earlier, the last date to file ITR was 31 July 2025.
  • Now, it is extended to 15 September 2025.
  • If you miss this, you can still file the return by 31 December 2025, but you will have to pay a penalty and interest.