ITR Late? Refund Delayed? Know Your Interest: Pay or Get Paid!

• Taxpayers pay 1% interest per month (Section 234A) for late ITR filing if tax remains unpaid, calculated from the due date.
• Government pays 0.5% interest per month (Section 244A) on delayed refunds, calculated from April 1st of the Assessment Year or actual filing date.
• Refund delays often stem from ITR-Form 26AS mismatches, unvalidated bank accounts, PAN-Aadhaar linking issues, or scrutiny.
• Interest on refunds may be denied due to taxpayer errors, unresponsiveness to notices, refunds from excess Section 140A tax, or amounts below Rs 100.
• For delayed refunds, track status, verify bank details, request re-issue, or file a rectification application/grievance via e-Nivaran.

Why It Matters: Understand interest rules for late ITR filing and delayed refunds to manage your tax obligations effectively.