Despite the multiple requests from tax professionals and individual taxpayers, the Income Tax Department did not extend the Income Tax Return (ITR) deadline for the Assessment Year 2024-25 beyond July 31. Many taxpayers haven’t received the tax refunds yet despite filing well in advance of the deadline.
However, the Income Tax Department typically issues refunds within a specific timeframe, and several factors can cause delays. It is important to understand that the Income Tax Department credits a tax refund only after processing your verified income tax return (ITR).
Many people may experience delays in receiving their refunds after filing ITR-2 or ITR-3 for the financial year 2023-24. So, if you are also facing delays in your income tax refunds, will you get an interest on delayed tax refunds?
How Much Time Does It Take To Receive Your ITR Refund?
As we all know the tax department won’t begin processing refunds until the taxpayer has e-verified the return. According to the tax department website, it takes four to five weeks for the refund to be credited to the account of the taxpayer.
However, if a refund is not received during this timeframe, the taxpayer must check for intimation regarding discrepancies in ITR or check email for any notification from the IT department regarding the refund.
Will You Get Interest On Delayed Tax Refunds?
Most of the time, the tax refunds get delayed. Taxpayers ask on the social media platform, “Will I get interest on my delayed tax refund?”
If an income tax return is filed by the due date, the taxpayer is entitled to interest at a rate of 0.5% per month or part of a month, starting from April 1, 2024, until the refund is issued. However, if there is a delay in filing, interest is calculated from the date the return is submitted until the refund is processed.
It’s important to note that no interest is paid by the Income Tax Department if the refund amount is less than 10% of the actual tax liability under section 143(1) or on regular assessment. Adding further, no interest will be given on refunds that are less than 10% of the assessed tax under section 143(1) or regular assessment.
