The delay in income tax refunds is due to investigation of incorrect claims. The refund is expected to come by December. In case of delay, the government is obliged to pay interest at the rate of 0.5% monthly (6% annually).
AIf you have filed income tax return and are still waiting for the refund even after months, then this news is for you! Even after the deadline of September 16 passed, many people have not received refunds. But, what many people don’t know is that if the refund is delayed, the government is obliged to pay you interest.
This is the reason for delay in refund
Central Board of Direct Taxes (CBDT) Chairman Ravi Aggarwal has clarified that some returns are being investigated for wrong claims, due to which there is a delay in giving refunds. He also informed that taxpayers who had made mistakes in filling the information have been contacted to file revised returns. Aggarwal said the remaining refunds are expected to be issued by the end of this month or by December.
How much interest will you get?
- If there is no fault of the taxpayer in getting the refund, then he is entitled to get interest on it in addition to the refund amount.
- The tax department pays simple interest at the rate of 0.5% every month (i.e. 6% per annum) on delayed refunds. This happens under section 244A.
- For those who filed returns within the deadline (September 16), interest will be calculated from April 1 to the date of receipt of refund.
- For those who file returns after the deadline, interest will be calculated from the date of filing the return till the date of receipt of refund.