The last date for filing ITR for the year was 16 September 2025, and it has already passed. However, many taxpayers are still waiting for their tax refunds. Because the refund has not yet been credited to their bank accounts, people are becoming disappointed. In such situations, it is important to know that if the delay happens from the Income Tax Department’s side, the government pays interest on the refund amount.
0.5% Monthly Interest: When and How Do You Get It?
According to experts, if there is a delay from the Income Tax Department, taxpayers receive 0.5% interest per month (which is 6% per year) on their refund.
- If you filed your ITR before the due date (16 September), the interest is calculated from 1 April till the date your refund is issued.
- But if you filed your return late, the interest calculation begins from the date you filed the return.
Who Will Get Interest and Who Won’t?
You will not get interest if the delay happened because of your own mistake—such as:
- giving wrong details,
- submitting incomplete documents, or
- replying late to a notice.
But if you paid extra tax through TDS, Advance Tax, or Self-Assessment Tax, and the delay is not your fault, then you are eligible to receive interest.
Experts also say that even if your return is under scrutiny, interest calculation continues—unless the delay is directly because of the taxpayer.
Cases Where You Will Not Receive Interest
As per the law:
- If your refund amount is less than ₹100, no interest will be given.
- Refund arising due to excess Self-Assessment Tax under Section 140A also does not get any interest.
That’s why it is important to understand the nature of your refund. If your ITR refund has still not been credited, you should first check your Form 26AS, AIS, and bank details. If everything is correct, and the delay is from the department’s side, then you are also entitled to receive interest on the refund amount.