Question 1

What is the Section 244A refund interest rate?

Accepted Answer

Simple interest at 0.5% per month or part of a month, which equals 6% per annum.

Question 2

When does refund interest start for on-time returns?

Accepted Answer

From 1 April of the assessment year to the date the refund is granted.

Question 3

When does it start for late-filed returns?

Accepted Answer

From the date of filing the return to the date the refund is granted.

Question 4

What is the 10% / ₹100 threshold?

Accepted Answer

No interest is payable if the refund is less than 10% of the tax determined or less than ₹100, whichever is higher.

Question 5

Is refund interest taxable?

Accepted Answer

Yes. It is taxable as Income from Other Sources in the year received and may appear in your AIS.

Income Tax Refund Interest Calculator — Section 244A

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