Many salaried taxpayers who filed their Income Tax Returns (ITR) for FY 2024–25 are still waiting for refunds, even weeks after the filing deadline.
While refunds are usually processed within a few weeks, this year, many returns are under extra scrutiny.
The delays are often due to:
Data mismatches
Verification of deductions
Backend checks by the Income Tax Department (ITD)
As a result, even legitimate refunds are taking longer than usual.
Interest on Delayed Refunds Under Section 244A
To compensate taxpayers, the law provides for interest on delayed refunds under Section 244A of the Income Tax Act.
Key points include:
If the delay is not the taxpayer’s fault, the ITD pays 0.5% per month (around 6% annually) on the refund amount.
For returns filed before the deadline, interest starts from April 1 of the assessment year.
For late-filed returns, interest begins from the actual date of filing.
However, interest may not be paid if the delay is caused by taxpayer errors, such as:
Incorrect bank or PAN details
Late verification
Discrepancies in declared information
Small refunds or self-assessment adjustments may also not attract interest.
Ensuring accurate filing and prompt compliance with notices is crucial to avoid delays or losing interest eligibility.
How to Track Your Refund Status
Taxpayers can check their refund status on the official e-Filing portal using their PAN or login credentials.
Under “View Filed Returns,” you may see statuses like:
Refund Issued
Refund Partially Adjusted
Refund Failed
If a refund fails due to incorrect bank details, the portal allows submitting a “Refund Re-issue Request.” Keeping your contact details updated ensures that your refund, along with any applicable interest, reaches your bank account smoothly once processed.
Key Takeaways for Taxpayers
Most pending refunds are expected to be released soon.
Eligible taxpayers will not only receive their excess tax amount but also interest compensation for the delay.
While the amount may be modest, it ensures that taxpayers do not face financial inconvenience due to administrative delays.
Tip: Double-check your ITR for accuracy, complete e-verification promptly, and keep your bank and PAN details updated to avoid unnecessary delays or denial of interest.
