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Home / Money / Personal Finance /  Received income tax refund without interest? You might be missing this eligibility

If a taxpayer receives income tax refund without interest, then the taxpayer is advised to first check about the income tax refund amount and the actual income tax outgo. This income tax calculation can be easily done by cross checking the income tax being paid in the income tax return (ITR). If the income tax refund amount is more than 10 per cent, then only one should lodge complaint about the non-payment of the income tax refund interest.

Speaking on the income tax refund interest payment rules Amit Gupta, MD at SAG Infotech said, "Interest on income tax refund shall only be paid when the amount of refund is more than 10 per cent of the actual tax liability that is calculated in the regular assessment or summary assessment."

Asked about how much interest the income tax department pays on tax refund the Managing Director of the SEBI registered tax solution company said, "The income tax refund interest shall be calculated at the rate of 0.5 per cent for every month or part of the month starting from the first month (April) of the assessment year."

Asked about the condition for interest payment on one's income tax refund Kartik Jhaveri, Director — Wealth Management at Transcend Consultants said, "If the tax refund has not been paid by the due date by the Income Tax Department, then interest on tax refund shall be calculated from the date of furnishing ITR to the date on which the income tax refund has been granted."

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