Income Tax refund delayed? Government will payback with THIS interest!
By Vinaykumar Patil | First Published Aug 19, 2024, 12:57 PM ISTDelays in income tax refunds can happen, but the government offers interest payments as compensation. This article explains how interest on delayed refunds is calculated and what steps you can take if your refund is taking longer than expected.
If you're waiting for your income tax refund, there’s some good news. The government has streamlined the refund process, and if you experience a delay, you may be entitled to interest on your refund. Typically, refunds are processed within 10 days to a month. However, if your refund is taking longer, this article explains what you should do and how interest on delayed refunds is calculated.
Taxpayers often worry when their refund is delayed, but there’s no need to panic if you’ve filed your return correctly. The government compensates for delays by paying interest on the refund amount. This interest is calculated from April 1st until the date your refund is issued, provided your return was filed on time.
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The interest rate on delayed refunds is 0.5% per month or an annual yield of 6%. However, there’s a catch: if the refund amount is less than 10% of your total tax, you won’t receive any interest.
How to check?
If your refund is delayed, start by checking your email. The Income Tax Department may have sent you a notice about errors in your filing. If you haven’t received any communication, you can track your refund status online. Visit (https://tin.tin.nsdl.com/oltas/refundstatuslogin.html), enter your PAN number and the relevant financial year, fill in the captcha code, and you’ll be able to see the status of your refund.
Common issues
- Non-e-verification of your return.
- Lack of response to emails from the Income Tax Department.
- TDS mismatches.
- Incorrect account details or IFSC codes.
- Invalid or unlinked bank accounts.
- Discrepancies between your PAN card name and bank account name.
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What to do if you haven’t received your refund?
If your refund is not processed and you haven’t received any updates, you can file a complaint. Visit the Income Tax Department’s website (incometax.gov.in) or call their toll-free number at 1800-103-4455, available on working days from 8 am to 8 pm. Complaints can also be registered through the e-filing portal.
By staying informed and taking these steps, you can ensure that any delays in your refund are addressed promptly and that you receive the interest you're entitled to.
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