Filed ITR on Time But Haven’t Received Refund? You May Be Eligible for Interest from IT Dept

For many taxpayers, filing their income tax return (ITR) on time each year is a disciplined habit. But when the much-anticipated refund doesn’t arrive even months after filing, frustration builds up. What many don’t realise is that the Income Tax Department may owe them interest on the delayed refund, as per Section 244A of the Income Tax Act.

Understanding Section 244A: Interest on Delayed Refunds

Under Section 244A, taxpayers are entitled to interest at 0.5% per month (6% per annum) on refunds that are delayed beyond the prescribed time limit. This provision ensures that the government compensates individuals for the time value of money held beyond due processing.

Interest is computed from 1st April of the assessment year to the date the refund is granted—provided the delay is not attributable to the taxpayer. If the refund is due after an appeal or reassessment, interest is calculated from the date of payment of tax or penalty to the date of refund.

Who Qualifies for Interest?

Taxpayers become eligible for interest under Section 244A if:

a) The ITR was filed on or before the due date under Section 139(1).

b) The refund amount is Rs 100 or more.

c) The delay is due to departmental processing and not because of missing documentation, incorrect bank details, or pending verifications.

However, if the refund is delayed because of a taxpayer’s error or late filing, interest will not be applicable.

Also Read: ITR Filing 2025: Deadlines, Refunds, and More — Your Complete Guide to Income Tax Returns This Year | Republic World

How to Check ITR Refund Status

You can track your ITR refund status 2025 on either the Income Tax e-filing portal or the NSDL website under the “Refund Status” section. In case of inordinate delays, taxpayers can raise a grievance with the Centralized Processing Centre (CPC) or approach the Income Tax Ombudsman under the CBDT’s refund rules.

Bottom Line

If your income tax refund hasn’t arrived despite timely filing and verification, don’t just wait—you may be eligible for delayed tax refund interest. Checking your refund status and ensuring bank details are correct can help expedite the process.