1. “ITR Refund Pending? Don’t Worry, You’re Entitled to Interest”
If you filed your Income Tax Return (ITR) and haven’t received your refund even after 3 months, the government isn’t ignoring you. According to tax rules, you are entitled to interest on the delayed refund.
2. “How the Interest is Calculated”
The interest on delayed ITR refunds is computed as per Section 244A of the Income Tax Act:
· Interest Rate: 0.5% per month (i.e., 6% per year)
· Starting Point: From 1 month after the ITR due date or the filing date (whichever is later)
· End Point: The date the refund is credited to your account
Example:
If you filed on July 31, 2025, and the refund hasn’t been credited by October 31, 2025, the government owes 3 months of interest on the refund amount.
3. “Who Can Claim This Interest?”
· Individual taxpayers, HUFs, and companies who filed returns and are eligible for a refund
· Applies to both income tax and TDS refunds
· Even if your refund is delayed due to IT Department verification, you are still entitled to interest
4. “Steps to Check Refund Status”
1. Visit the Income Tax e-Filing portal: incometax.gov.in
2. Go to ‘View Returns/Forms’ → ‘Refund/Demand Status’
3. Enter your PAN and Assessment Year
4. Track your refund and note if interest is being paid for delays
5. “What If the Refund is Delayed Beyond 6 Months?”
The government continues to pay interest for every month of delay, no matter how long it takes. This ensures taxpayers are compensated for the waiting period.
6. “How Interest is Credited”
· Interest is automatically calculated and credited along with the refund
· You do not need to file a separate claim
· If there’s a discrepancy, you can contact the Income Tax Helpline or log a grievance via the e-Filing portal
7. “Tips to Avoid Refund Delays”
· File ITR accurately and on time
· Ensure your bank account and PAN details are correct
· Link your Aadhaar and PAN to avoid verification delays
· Use e-verification methods like OTP, net banking, or Aadhaar OTP
8. “Quick Recap: What You Need to Know”
· Refunds delayed beyond 3 months attract interest under Section 244A
· Interest rate is 0.5% per month
· It’s automatically credited along with your refund
· Always verify bank details and e-verification to speed up refunds
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk..jpg)
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