New Delhi: Many salaried taxpayers who filed their income tax returns for Financial Year 2024–25 are still waiting for their refunds, even though several weeks have passed since the filing deadline. While the tax department generally processes refunds within a few weeks, this year many returns are under additional scrutiny — data mismatches, deduction verifications and backend checks have slowed things down. As a result, legitimate refund payments have been delayed beyond the usual processing timeframe.
To ease the burden on affected taxpayers, the law provides for interest on delayed refunds through Section 244A of the Income Tax Department (ITD). Under this provision, if a refund becomes due and the delay is not due to the taxpayer’s own error, the department must pay simple interest at 0.5 percent per month (roughly 6 percent per annum) on the amount payable. For returns filed before the official deadline, interest accrues from April 1 of the assessment year until the refund is issued. If the return was filed late, the interest period begins from the actual date of filing.
That said, the interest applies only if the refund delay is attributable to the department. If the delay stems from mistakes by the taxpayer — such as incorrect bank or PAN details, late verification, or discrepancies in declared information — the interest may be waived. Similarly, in certain cases (e.g. very small refund amounts, or refunds arising from only self-assessment tax adjustments), interest may not be granted despite the delay. Therefore, being diligent at the time of filing — ensuring correct bank details, Aadhaar/PAN linkage, accurate deductions and prompt compliance with any notices — remains crucial.
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Taxpayers keen to check their refund status can log in to the official e-Filing portal using their PAN or user credentials. Under “View Filed Returns,” the status will show as “Refund Issued,” “Refund Partially Adjusted,” “Refund Failed,” or other relevant messages. If the refund has failed due to incorrect bank validation, there may be an option to submit a “Refund Re-issue Request.” Regularly checking the portal and keeping contact information updated helps ensure that once the refund is processed, money — along with any applicable interest — lands in your bank account smoothly.
With most pending refunds expected to be released soon, eligible taxpayers should receive not only their excess tax amount but also compensation in the form of interest for the delay. While the compensation may not be large, it represents a recognition that taxpayers should not suffer financially due to administrative delays. In the meantime, staying vigilant about return accuracy and e-verification can help avoid added delays or denial of interest.
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