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If you have filed ITR on time and refund has not been credited even after months, then there is good news for you. The Income Tax Department also pays interest on delay, provided it is not your fault. Under Section 244A, taxpayers can get 0.5 percent interest every month.
New Delhi. The last date for ITR filing is 16 September 2025. It has been a long time, but many taxpayers are still waiting for the refund. Frustration is increasing among people due to non-receipt of refund in bank accounts. At such a time, it is important to know that if the delay is from the department’s side, then the government not only pays the refund but also pays interest on it.
0.5% per month interest: when and how to get it?
According to experts, the Income Tax Department gives simple interest of 0.5 percent per month (6 percent per annum) in case of delay. If you have filed ITR before the due date i.e. 16th September, then the interest will be calculated from 1st April till the date of receipt of refund. But if the return is filed late, the calculation of interest starts from the date of filing.
Who will get interest, who will not?
If the delay is due to you – such as providing incorrect information, submitting incomplete documents or responding late to the notice – you will not receive interest. But if you have deposited excess tax through TDS, advance tax or self-assessment tax and it is not your fault, then interest definitely accrues. Experts say that the calculation of interest continues even when the scrutiny of the return is going on, unless the delay is directly caused by the taxpayer.
Interest will not be given in some cases
According to the law, if the refund amount is less than Rs 100, there is no provision for paying interest. Also, no interest is paid on the refund received for paying excess self-assessment tax under Section 140A. Therefore, it is important to understand the refund as well as its nature. If your ITR refund has not come yet, then you should match your Form 26AS, AIS and bank details. If everything is correct, then you can also get the right to interest on delay.
