Income Tax Refund- If you have filed Income Tax Return (ITR) and are waiting for refund, then don’t panic. Now you are going to benefit. Actually, now the government is also going to pay interest on delay in ITR refund. That is, the more days the refund is delayed, the more extra money will come in your account.
When will I get the interest?
Under Section 244A of the Income Tax Act, if there is a delay in the tax refund, the government will give you 0.5% interest every month. This interest will be calculated from the day you filed the return or the assessment year ends. And will continue until the refund is paid.
How will interest be calculated?
If you are entitled to a refund of Rs 10,000 and the government pays it after 6 months, you will get Rs 10,000 + Rs 300 (0.5% per month for 6 months) = Rs 10,300. It is important to note here that this interest will be available only in those cases where the refund amount is more than 10% of your total tax.
In how many days will the refund come?
If you have filed ITR correctly and e-verified it, the refund will come to your account in 4-5 weeks. However, if your account is already pre-validated, the refund can also come in 7-20 days.
What are the conditions to get interest?
If the delay is due to your mistake, like incomplete documents, then you will not get interest. Please note that if your refund comes on time, then you will not get any interest.
What is the last date to file ITR?
Till now the last date for filing ITR was 31 July 2025 for non-audit taxpayers. Which has later been extended to 15 September 2025. However, if you miss filing ITR, then you can file Delayed Returns till 31 December 2025. However, for this you will have to pay interest along with penalty.