This year, you can get up to 33 percent interest on a refund on a delay in ITR filing, know-how

This year, you can get up to 33 percent interest on a refund on a delay in ITR filing, know-how India-employmentnews | 29/05/2025 16:15:03

ITR Filing: According to Section 244A of the Income Tax Department, interest is given by the Income Tax Department at the rate of 0.5 percent per month on higher tax deductions.

ITR Filing And Tax Refund: When someone files tax return, it definitely comes to his mind that what will happen if he fills it late. While a penalty is imposed by the Income Tax Department for filing late, this time when the deadline for ITR has been extended by the CBDT, do you know that you will get increased interest on it? Actually, the deadline for ITR filing for the financial year 2024-25 has been extended this time by the Income Tax Department. Usually the last date for filing ITR is 31 July. But this time due to some special reason, taxpayers have been given time to file ITR till 15 September 2025.

If you pay more tax as TDS, advance tax or self-assessment, then you are given a refund after filing ITR. According to Section 244A of the Income Tax Department, interest is given by the Income Tax Department at the rate of 0.5 percent per month on higher tax deduction. On one hand, while this is a relief for many people, on the other hand it means that people will expect to get more refund this time, which is given by the Income Tax Department in the form of interest.

This time more refund will come

Interest starts from April 1 of the assessment year and it continues till the refund is issued. In such a situation, when the date of filing ITR has been extended by one and a half months, in such a situation, if your refund is processed in October, then you will get two months extra as interest.

It is worth noting here that when you get interest on tax refund, it is taxable under income from other sources and has to be declared in ITR. However, despite getting more refund, experts are also warning about this type of interest.

Early ITR filing will get refund quickly

This means that after filing ITR early, it will be processed quickly. You will get refund quickly and you can use that money as a better option somewhere else. Therefore, instead of delaying the ITR filing, it will be better if it is done on time, so that you will get the money on time.