Three Months and No Refund Yet? See What Interest Government Must Pay You

The due date to file Income Tax Return (ITR) is over, but many taxpayers still haven’t got their refunds. So, the big question is does the government pay interest if your refund is delayed?

The answer to the above is yes, the government does pay interest, but it depends on when you filed your return and why the delay happened.

If you filed your return on time, the interest is calculated from April 1st of the assessment year until the date the refund is issued.

If you filed your Income Tax Return (ITR) for FY 2024-25 on or before September 16, then the government will pay you interest if your tax refund gets delayed. The rate of interest is 0.5% per month.

How Much Will Government Pay You?

If you file your Income Tax Return (ITR) after the due date then the interest on your refund will be counted from the date you filed the return, not from April 1.

This means you’ll get less interest, because the government will pay interest only for the time after you filed your return, not for the earlier months.

You Can Expect a Higher Interest Payout

If the government fails to issue a refund within the specified time, it is required to pay interest to the taxpayer under Section 244A of the Income Tax Act. The interest is also given on the money you’ve already paid as TDS, advance tax, or self-assessment tax. This means that the government will pay you interest for as long as it holds your money.

In case a delay occurs due to the taxpayer’s fault, such as incomplete documents, inaccurate bank details or some other error, interest is not payable. But, if the delay is due to the department, the taxpayer is guaranteed to receive interest.

How to Check Result status

You can easily check your status by entering your PAN and assessment year in the Check Refund Status section on the Income Tax e-filing portal.

In case your refund is still pending, you can contact the Central Processing Center or your Assessing Officer. And if the refund is pending, contact the Central Processing Center or your Assessing Officer. Also, preserve all payment receipts and documents so that they can be used as evidence in case of any future disputes.