Are you eligible for interest on your ITR refund? Experts explain income tax rules, calculations and key conditions

Waiting for your ITR refund? A delayed refund does not automatically mean you will receive interest. Here’s when interest may be payable under Section 244A, how it is calculated, and the key conditions taxpayers need to know.

Taxpayers who filed their ITR in July 2026 and are still waiting for a refund may be eligible for interest on the amount. However, eligibility for interest is not determined simply by how long the refund has been delayed.

According to Section 244A of the Income Tax Act, 1961, “The period for which interest is payable shall depend on the type of tax out of which the refund arises and the date of furnishing return of income.”

So, when does a taxpayer become eligible for interest on an income-tax refund, and how is the interest calculated? Here’s what experts have to say.

When is a taxpayer entitled to interest on a delayed ITR refund?

Siddharth Maurya, Founder and Managing Director, Vibhvangal Anukulara said, “A taxpayer is entitled to interest if a refund is granted to him/her at a later date when it is already due.”

For refunds arising from excess TDS, TCS or advance tax, where the return is filed within the prescribed due date, interest is calculated from 1 April of the assessment year until the date the refund is granted. However, interest is not payable if the refund is less than 10% of the tax determined, he added.

Filed ITR in July 2026 but refund is still pending: Will you get interest?

Yes. Maurya said, “A taxpayer is eligible for interest on the refund under Section 244A if the return was filed in July 2026 and a refund is ultimately determined to be payable.”

However, waiting for a refund does not mean interest is payable. Generally, interest is calculated and paid along with the refund, he added.

How is interest on an income-tax refund determined?