Archive · 19 Dec 2025
Conditions for Ineligible Interest on Delayed ITR Refunds
When you file your income tax return (ITR) and are owed a refund, the Income Tax Department usually processes it within a few weeks.
However, sometimes there are delays.
Normally, if your refund is delayed, you get an extra 6% interest per year.
But there are cases where you won't get this interest.
For example, if your refund is less than ₹100 or if it's less than 10% of the tax you paid, you won't get interest.
Also, if the delay is because of mistakes you made or if your tax assessment is still pending, you won't get interest for that time.
You can check the status of your refund online.
The Income Tax Department also sends messages to taxpayers to help them correct any mistakes in their tax filings.
Interest on delayed ITR refunds is not provided if the refund amount is less than ₹100 or 10% of the total tax liability.
Delays caused by the taxpayer or pending assessments make the refund ineligible for interest.
Interest is calculated from April 1st if the return is filed on time, otherwise from the filing date.
Taxpayers can check their refund status on the income tax portal.
The Income Tax Department sends advisory messages to taxpayers to correct discrepancies in their filings.
- Who
- Income Tax Department and taxpayers
- What
- Conditions under which taxpayers are ineligible for interest on delayed income tax refunds
- When
- During the income tax refund process
- Where
- India
- Why
- To ensure compliance and correct processing of tax refunds
- Refund Processing Time
- 4-5 weeks
- Interest Rate on Delayed Refunds
- 6% per annum
- Minimum Refund for Interest Eligibility
- ₹100
- Refund Amount Threshold for Interest
- 10% of total tax liability
- Last Date for Belated Return Filing (AY 2025-26)
- 31st December 2025
