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Dec 22, 2025
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Waiting for your income tax refund? Why you may not get interest despite the delay
Waiting for an income tax refund can test anyone’s patience. For many taxpayers, the delay feels even more frustrating when they expect interest on the amount due. While the Income Tax Act does allow interest on delayed refunds, the benefit does not apply in every case.
Interest on delayed refunds is paid at 6% per annum under Section 244A of the Income Tax Act. It is calculated from April 1 of the assessment year until the day the refund is credited. However, there are clear situations where taxpayers may not receive this interest, even if the refund is delayed.
WHY REFUNDS ARE FACING DELAYS
Refund processing has slowed down due to a mix of compliance checks and data issues. Common problems include incorrect bank details, Aadhaar–PAN linking errors and wrong claims made in returns.
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