Neutral impactEconomy
Are you eligible for interest on your ITR refund? Experts explain income tax rules, calculations and key conditions
Mint 1 hr ago·5 Oct 2026, 4:53 pm
The Income Tax Department may owe you money if your Income Tax Return (ITR) refund is delayed beyond the statutory deadline. According to Section 244A of the Income Tax Act, the tax authority is required to pay interest on the refund amount. This interest compensates you for the time value of money while your funds are stuck with the government. The interest is calculated at a specific rate, which is generally the same as the Savings Bank Rate, and is payable from the date the refund was due until the date it is actually credited to your bank account.
For investors, this means that a delayed refund is not a loss; the tax department pays you for the delay. The key condition is that the refund must be due on or after April 1 of the assessment year. To receive this interest, you must have filed your ITR on time and provided the correct bank account details. If you have not received the refund or the interest amount, you can track the status on the official tax portal or contact your assessing officer for clarification.
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