• Source:JND
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Taxpayers who file ITR every year eagerly wait for their ITR returns at the end of the financial year. The deadline for filing the ITR each year is July 31. But this year, the Income Tax Department gave the taxpayers an extended deadline until September 15th, which was then extended to September 16th to file their ITR. 

However, the refund process is taking a lot of time. As per rules, the Income Tax Department is legally mandated to compensate the taxpayer with simple interest on the delayed refund. Let us look at these laws and see how much compensation you are eligible to receive?

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What Are The Rules Regarding Interest?

  • According to Section 244A of the IT Act, if the refund is delayed by the IT, 6 per cent is paid as an add-on with the refund. 

  • The calculation for this interest is done from the date the refund is due. 

  • The only point to remember in this rule is that the delay in filing the ITR is not due to incorrect filing or inaccurate information

  • Besides this, there is also Section 437 (1) that provides an interest rate of 0.5 per cent per month on the refund amount. 

  • However, these rules only apply to those who do not make any mistakes while filling out the ITR form.

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Why Are Income Tax Refunds Getting Delayed?

According to Jagran.com, citing the Chairman of the Central Board of Direct Taxes (CBDT), Ravi Agarwal, several reasons have come up for the late refund:

- Most of the high-value refunds or cases have been red-flagged by the system and are currently undergoing several checks by the government.

- Some individuals have flagged incorrect deductions by the government, which is being thoroughly investigated.

- This time, the biggest reason for the delay is the discovery of incorrect deductions or incorrect refund claims in some cases.

The CBDT Chairman added that the government is thoroughly checking these types of cases, and till then, only small amounts of the refund have been processed.

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