Refund not received even after 3 months of filing ITR, Find out how much interest the government will pay now?

ITR Rules: If the refund hasn't arrived even after filing your ITR, the government will pay interest. Interest is calculated according to the rules set out under Section 244A.

The deadline for filing income tax returns has passed, but many people haven't received their refunds yet. This raises the question: Will the government pay interest if the refund is delayed? The answer is yes. However, it depends on when you filed your return and the reason for the delay.

If you filed your ITR for the financial year 2024–25 by September 16, i.e., within the deadline, the government will pay interest on the refund from April 1. This interest will continue until the refund amount reaches your bank account.

This means that if the department delayed processing, you are entitled to interest. However, if you filed your ITR after the deadline, you are entitled to interest. The rules change slightly. In such cases, interest will be calculated not from April 1st, but from the date you filed your return.

This means that late filers may suffer some loss in interest. Section 244A of the Income Tax Act provides for interest on refunds. If the government fails to disburse a refund within the stipulated time, it is required to pay interest to the taxpayer.

The interest rate is 0.5 percent per month or part of a month, and is applicable to the entire refund amount. This interest is also calculated on amounts such as TDS, advance tax, or self-assessment tax. However, if the delay is due to your fault, such as submitting incorrect details or incomplete documents, interest is not accrued.

However, if the delay is due to the department, interest is guaranteed. If your refund hasn't arrived yet, first check the status on the Income Tax e-filing portal. If necessary, contact the Central Processing Center or your Assessing Officer.

Keep all payment receipts and other relevant documents as evidence in case of any disputes later. If you filed your ITR on time and correctly, you are guaranteed to receive interest from the government for the delay under Section 244A.