The deadline for filing income tax returns (ITR) has passed, but many people are wondering whether they will get interest on their tax refund if they filed late. If ITR for FY 2024-25 was filed by September 16, interest on the refund will be calculated from April 1 until the TDS refund is credited to the account. However, if the return is filed late, i.e. after the deadline, the rules are slightly different. In such cases, interest will accrue, but not from April 1. Calculation of interest will start from the date of filing of return and will continue till the refund amount is transferred to your account.
Rules for interest on tax refund
Under Section 244A of the Income Tax Act, the department is required to pay interest if the refund is delayed. This interest is earned on the taxpayer’s money which remains with the department after the deadline. The interest rate is 0.5% per month or part of the month. This interest is paid on the entire refund amount, including TDS, advance tax or self-assessment tax. However, if the delay is due to your own fault, such as giving wrong information in the return or not submitting the required documents, interest will not be paid. However, if the delay is due to the Income Tax Department, the taxpayer is sure to get interest.
Check Refund Status
If the refund is delayed, taxpayers should check the status on the e-filing portal and, if necessary, contact the Central Processing Center or the Assessing Officer. It is also important to keep all payment proofs and documents safe to ensure interest eligibility. Overall, Section 244A ensures that taxpayers do not suffer losses due to government delays. So, even if the refund is delayed, if you have done everything correctly, you will definitely get the interest.
